Tom Cleverley has agreed to join Watford on a permanent deal from Everton on July 1.
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The former Manchester United midfielder is on loan at Walter Mazzarri's side this season, and has made 20 appearances in all competitions.
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"I'm delighted," he told Watford's official website. "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.
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"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."
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Watford CEO Scott Duxbury said: "We're 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.
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"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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