Valencia are in advanced talks to sign Watford midfielder Etienne Capoue on a loan-to-buy agreement, Football Insider can exclusively reveal.

A move would see the 32-year-old reunited with his former boss Javi Gracia who joined the La Liga big guns after he was sacked by the Hornets in September 2019.

A recruitment source has told Football Insider that the loan deal would include an option to buy the midfielder at the end of the season for a fee of around £5-7million.

Capoue has two years remaining on his contract at Vicarage Road having renewed terms in March 2018.

The centre-midfielder joined the Hornets from Tottenham for a fee of £8million in the summer of 2015 and has gone on to make 170 appearances for the club.

He arrived to England from Toulouse with a big reputation in 2013 and his subsequent 180 Premier League appearances have yielded 10 goals and eight assists.

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Alongside Abdoulaye Doucoure, who recently joined Everton, he formed a formidable midfield partnership for Watford and helped the club achieve their highest ever Premier League finish of 11th in 2018/19.

The Hornets were relegated from the Premier League last season after the controversial sacking of Nigel Pearson with just two games of the campaign remaining.

Hayden Mullins took temporary charge before Serbian Vladimir Ivic was appointed as the new manager of the club last month.

Football Insider revealed earlier this month that star forward Ismaila Sarr’s future at the club was uncertain with Liverpool laying the groundwork for a concerted bid in January.

However, the Reds signing of Diogo Jota from Wolves makes it highly unlikely that they will also move for Sarr.

Capoue has not featured for the Hornets so far this season as he works his way back up to full fitness but he is expected to be available from October.

In other Watford news, it can be REVEALED that two Euro clubs have turned their attention to signing Danny Welbeck.