The 19-year-old will spend the entire season with Steve Evans' side.
Adshead was on loan at SC Telstar in the Netherlands for all of last season.
The youngster, who has been with Norwich since 2019, will be hoping he can prove his quality and compete for a first team spot with the Hornets next term.
The midfielder did feature in pre-season for Daniel Farke's side, but all parties believe a loan move is best for his development.
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