Watford have opened talks with Chelsea over a £5million deal for striker Ike Ugbo and hope to add winger Kwadwo Baah from Rochdale.
Xisco Muñoz’s side want to strengthen having been promoted back to the Premier League at the first time of asking.
Baah, 18, is out of contract in the summer and was due to join Manchester City in January, only for a medical issue to halt negotiations. The Hornets have subsequently stepped in to offer a £125,000 compensation fee for Baah, who underwent a medical on Wednesday with the Vicarage Road side.
Ugbo is another young forward who has been impressing while out on loan at Cercle Brugge in Belgium.
The 22-year old has scored 16 goals this season, and Brugge have the option to make the move permanent from Stamford Bridge.
Having helped the Belgian side avoid relegation from the top tier, they are said to be interested in signing him full-time but it is understood that Ugbo would prefer a move elsewhere, with a return to England the most likely option.
Other clubs from across Europe have said to be monitoring the forward, with Eintracht Frankfurt and Genk also interested in Ugbo.
However, The Athletic understands that negotiations between Chelsea and Watford began earlier this month, and another meeting is scheduled in the coming weeks – meaning talks are still at an early stage.
Speaking last November, Ugbo revealed how lonely going through the Chelsea loan system was, especially during his time at Barnsley where things didn’t work out.
“Looking back it was quite a lonely experience,” Ugbo told The Athletic. “I lived on my own in a flat in Sheffield.
“It was a big difference from what I was used to, especially when I wasn’t playing. I would go home and was by myself.
“I’d be disappointed about the result or not scoring. I wasn’t quick enough to bounce back, to redeem myself. That was a mistake.
“I thought I could play the same way as I did for Chelsea’s youth teams, when I was scoring lots of goals. I thought I would just take it straight into the Championship.
“But it is a totally different game, especially mentally. When I went there I was high on confidence and just doing the same things, having the same approach.
“I knew it was a good level, a lot harder, but I think I missed out on doing the extra work I needed to do, especially being just 18 – I just didn’t prepare the way I should have.”