Newcastle United were happy for Joao Pedro to join Brighton this week.
Watford and Brighton have confirmed the deal, with Pedro to join the Seagulls at the end of the season.
The Brazilian was blocked from joining Newcastle last summer after a £30m offer was made.
However, ChronicleLive says Newcastle chose not to try again as Brighton made their move.
Newcastle are keen to sign another forward this summer, but have bigger ambitions given their imminent Champions League qualification.