Watford are in talks to sign Aris Thessaloniki winger Luis Palma on an initial loan.
Palma is a Honduras international who was targeted by Rangers earlier in the window.
The 23-year old has attracted scouts from a number of European clubs including Manchester United and Anderlecht after scoring 13 goals in 35 games for Greek side Aris.
Rangers held initial talks but a deal failed to materialise and Watford have now stepped in.
They are looking to pay an initial £850,000 loan fee with the deal becoming permanent for £4.