Leicester boss Pearson sorry to lose Dyer
Pearson said there was no hard feelings over the winger's decision to move to Watford.
"Ultimately, players have to make their own decisions," said Pearson to the Leicester Mercury.
"Lloyd has been here since my first time here and done exceptionally well, but it's his decision to move on.
"Players have to be able to make their own decisions. He goes with everyone's best wishes.
"He had a really good season last season and, in some ways, it is a shame we are not going to see him in the Premier League."
For the big stories and the banter follow us on Twitter: @tribalfootball