With Will Hughes’ contract expiring next summer, the midfielder has refused to sign a new deal and has been heavily linked with a move away from Vicarage Road.
As such, manager Xisco Munoz will be looking to fill the gap left by Hughes in the middle of the park.
The Hornets have identified Tufan as the midfielder they have in mind to fill that gap and now the deal seems to be heading in the right direction.
Watford have accepted all of Tufan’s terms and it is now up to Fenerbahce to come to an agreement with the Hornets and seal the deal.
The Turkish club would prefer to sell the player, but are also not ruling out loaning him out with an option to buy.
Tufan has made over 170 appearances for the Super Lig side in all competitions, scoring 21 goals and providing 24 assists.
Watford are not the first Premier League side to take an interest in Tufan, as he was linked with Crystal Palace earlier in the summer.