Hughes, who is now on global duty with the England under-21s in Poland for the European Championships, is valued at £8million by his current club, but the fee may peak at £10million following the addition of instalments.
Hughes has been one of the most highly regarded midfielders operating outside the top flight after making his Derby debut at the age of 16 under Nigel Clough.
He was coveted by a number of Premier League clubs and was linked with a £15m move to Liverpool.
However, he suffered a cruciate ligament injury at Bolton during the opening game of the 2015/16 season and was sidelined for eight months.
The Derby midfielder - now in Poland with the England Under-21 squad - has always been linked with a move to a Premier League club, after breaking into the Derby first team at the age of 16.
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Hughes has scored nine goals in 165 appearances for Derby.
Hughes would be new Watford manager Marco Silva's first signing at Vicarage Road, whilst Tom Cleverley agreed a deal to join the Hornets under the management of Walter Mazzari.
Hughes looks set to depart Pride Park for a fee which could reach £8 million and it is claimed that Derby boss Gary Rowett will use the money to "finance a rebuild" - starting with Stoke City's Whelan.
This post was syndicated from 360Nobs.com.
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