Watford are believed to have reached a pre-contract agreement with Jerome Sinclair ahead of his impending exit from Liverpool.
The 19-year-old has been the subject of interest from the Hornets for some time, the Vicarage Road outfit trying and failing to land him in January as they failed to meet the Reds' £3million valuation.
Having hung on to the teenager, the Merseysiders had hoped they could come to an agreement on a new deal before his current one expires this summer but have been frustrated by Sinclair's representatives.
The striker, who has only made two appearances for Liverpool, was reportedly reluctant to commit his future to Jurgen Klopp's men due to a perceived lack of progression and has instead agreed in principal to move to Watford, according to talkSPORT.
The Hornets, who are 9/2 with Titan Bet to win the FA Cup, will now look to come to an agreement on a compensation figure with Liverpool or risk having a tribunal decide how much the Anfield outfit are due.