Etienne Capoue will remain at Watford this season.
The French midfielder, who was linked with Valencia, has rescinded his transfer request to leave Vicarage Road.
"He [Capoue] is the guy who wants to come back, to give his best for the team," Hornets boss Vladimir Ivic. "All of us are satisfied that he is coming back to work with us.
"It was not because of me that he stayed out the previous one-and-a-half months. It was because of his reasons; to do with injuries and the transfer window.
"I expect he will adapt as fast as possible with the new system and the new conditions of the team."