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Tom Cleverley is to join Watford from Everton on a permanent basis at the end of the season.
Cleverley has made eight appearances for the Hornets since joining the club on a short-term loan deal in January.
He has now signed a five-year deal to move to Vicarage Road permanently with the transfer set to be formalised on July 1.
"I'm delighted. I think I made it clear I had feelings for the club when I came down here on loan and it was always the view to sign a permanent deal, so I'm over the moon," Cleverley told the club's official website.
"I felt part of the club from day one of the loan but now I really feel this is home and hopefully it is for a very long time."
Watford chief executive Scott Duxbury said: "We are very pleased to secure Tom's signature. I believe it's a sign of our ambition to recruit the highest calibre of player for Watford.
"Tom's affinity with the club and supporters has been very clear from the moment he returned, and we now look forward to seeing him in a Watford shirt for many years to come."
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