Having just been promoted to the Premier League, Watford have agreed a £7 million fee for Genoa winger Diego Perotti.
The deal breaks Watford’s previous transfer record which was just £3.2 million when the club signed Nathan Ellington from West Bromwich Albion eight years ago.
Facing competition from the likes of West Ham, Inter Milan and Valencia, the Hornets have secured quite a coup in Perotti who has also played in La Liga.
Perotti began his career at Boca Juniors and made his international debut in 2009 while he was at Sevilla where he played for six seasons. He scored four goals and made five assists in 27 appearances last season in Serie A for Genoa.
The Hornets secured their Premier League return in April, after a 2-0 win over Brighton, although a 1-1 draw at home to Sheffield denied them the Championship title.
Perotti will be their third signing of the summer after Sebastian Prodl and Giedrius Arlauskis.