Hornets agree sale
Watford have agreed a deal in principle to sell the club to the Pozzo family.
The Italian family already own Serie A side Udinese and Spanish team Granada and are now poised to take over at Vicarage Road.
A statement from the club read: "The board of directors, acting on behalf of Watford Football Club, is pleased to confirm that an 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."
Current Hornets owner Laurence Bassini bought the club 15 months ago but has now decided to sell up.
Bassini on Monday began legal proceedings against a media outlet who reported the club had problems paying staff wages for May. He insisted the money was paid at the end of the month.