Liverpool youngster Jerome Sinclair has signed a four-year deal to join Watford when his contract at Anfield expires this summer.
Watford were linked with a move for Sinclair in January, but Liverpool are understood to have rejected a £1.5million bid for the striker.
The 19-year-old, who has made five first-team appearances for the Reds, will now link up with the Hornets on July 1.
Due to the England youth international’s age, Liverpool will be due compensation, meaning a Premier League tribunal will decide a price as the two clubs have not agreed a fee.
Last month Liverpool were ordered to pay an initial £6.5million to Burnley for the signing of Danny Ings last summer, with a further £1.5million in potential add-ons.
Sinclair would not command such a fee, but the Reds will expect more than the £1.5million they reject for the player, who become the club’s youngest ever debutant in 2012.
Another promising Liverpool youngster, Jordan Rossiter, has agreed to join Rangers at the end of his contract, with the Merseysiders receiving £250,000 in compensation for the midfielder, who has been at the club since the age of six.