Barcelona say they have reached an agreement with Watford which will see Gerard Deulofeu move to Vicarage Road on loan for the rest of the season.
The Spanish side say the deal will see Watford cover Deulofeu’s wages for the duration of his stay at the Premier League club.
A statement on the Barcelona website said: “FC Barcelona and Watford Football Club reach an agreement on the loan of Gerard Deulofeu until 30 June 2018.
“The agreement sees the English team cover his salary and a potential add on of one million euros.”
Deulofeu re-joined Barcelona from Everton in the summer but has started just five La Liga games this season and the two clubs had been in talks on Monday.
The 23-year-old started his career at the Nou Camp before loan spells at Everton and Sevilla and his arrival at Vicarage Road will be the first acquisition for the newly appointed manager Javi Gracia.
He made the move to Goodison Park on a permanent basis in July 2015, scoring four goals in 33 appearances that campaign.
However, Deulofeu fell down the pecking order following the signing of Yannick Bolasie from Crystal Palace and spent the second half of the following season on loan at AC Milan.
Barcelona then activated a buy-back clause for the Spain international winger, signing him on a two-year deal in the summer, but he has struggled for game-time this season, scoring two goals.