Watford have confirmed that owner Laurence Bassini is poised to sell the club to the Pozzo family.
The Italians, who also own Serie A outfit Udinese and La Liga side Granada, have been interested in purchasing an English club for some time.
It now appears that they have pinpointed the Hornets as the ideal chance for investment, with a statement on the club website reading: "The board of directors, acting on behalf of Watford Football Club, is pleased to confirm that agreement has been reached in principle for the transfer of ownership to the Pozzo family.
"Representatives from the family have been in discussions with Watford Football Club and both parties have agreed initial terms."
Watford finished 11th in the Championship last season under the management of Sean Dyche.
