Watford are set to continue their squad strengthening for their return to the Premier League with the purchase of the Holland winger Steven Berghuis from AZ Alkmaar.

The 23-year-old, who has graduated through junior levels into the senior Holland set-up and had been heavily linked with PSV Eindhoven, can play on either flank or as a No10, and scored 11 times for AZ last season.

Berghuis had trials with Chelsea and Tottenham Hotspur as a youngster before making his breakthrough at FC Twente, though he has thrived most consistently at Alkmaar. He is likely to cost around £3.5m and will join Etienne Capoue – a club record signing at around £5.7m – Giedrius Arlauskis, Sebastian Prödl, José Holebas, Valon Behrami, Matej Vydra and Allan Nyom as new arrivals at Vicarage Road.

Nyom, a Cameroon international right-back, signed a four-year deal at the club on Tuesday having joined from Udinese and will now link up with Quique Flores’s squad on their pre-season training camp in Germany.