Benfica president Luis Filipe Vieira is ready to sell Andre Carrillo to Watford.
Vieira expects Watford to sign Peruvian winger Carrillo for around €20m come the end of the season, says O Jogo.
The 26-year-old joined the Hornets on loan at the start of the season and there is believed to be an option to make the deal permanent in the summer.
Meanwhile, Alex Jakubiak is happy with his loan at Falkirk.
“It was a big decision for me," he told the Watford website. “I've been on loan five times before now.
“I found it difficult in Oxford when I was younger, being away from home, but as I have got a bit older, being more independent I think has helped me develop as a person.
“I was told Falkirk were interested just before Christmas and actually went up there on Boxing Day to train with them for a couple of days.
“I was impressed with what I saw, enjoyed it and felt like it was somewhere I could come and develop."