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Watford signed a six-year contract with Tom Dele-Bashiru after the expiry of his contract in Manchester City.
The central midfielder made an appearance for the Premier League champions at the Carabao Cup in 2017.
Dele-Bashiru, 19, represented England and Nigeria in youth and scored for the Super Eagles at the U-20 World Cup in May against Qatar.
He becomes the Hornets' second rookie this summer after Craig Dawson's departure from West Bromwich Albion.
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