We are delighted to announce that the club has agreed to sign forward Joao Pedro from Watford for undisclosed terms.
The 21-year-old Brazilian will officially join the club when the summer transfer window opens on a contract that runs until June 2028.
Technical director David Weir said, "Joao has been a long-term target of ours, and he has also attracted a lot of interest from across Europe.
"So, we are delighted to have reached an agreement with a key target for the club ahead of the summer window opening, and it is great for Joao that he can focus on the new season, with his immediate future settled.
"He's a brilliant young talent, technically very good, quick and with an eye for goal. He will complement our existing forward line very well. He also has settled well here, with good experience of both the Premier League and Championship and more than 100 games for Watford.
"We are really looking forward to starting work with him in pre-season, here in the UK and when we travel to the United States for the Premier League Summer Series."
Joao came through the youth ranks in his homeland with Fluminense, making his senior debut in March 2019. He would finish off the year with seven goals in 29 appearances for the Brazilian Serie A side, before making the move to then Premier League Watford at the beginning of 2020.
He made his debut for the Hornets in June 2020 against Southampton during Project Restart, and during three-and-a-half years with the Hornets has scored 24 goals in 80 starts.
It would be the following season in the Championship that Joao made his breakthrough in English football, netting nine goals in the second tier as Watford finished second to make an immediate return to the top flight.
He fired in three Premier League goals that campaign, including one in a 4-1 victory over Manchester United. This season has been his most productive in front of goal, scoring 11 goals and assisting four times.