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Benfica winger Andre Carrillo will have a medical at Watford on Thursday before signing on a season-long loan.
Watford boss Marco Silva worked with Carrillo at Sporting Lisbon, where he spent five years before joining Portuguese rivals Benfica last summer.
The 26-year-old was part of the Peru squad that finished third at the 2015 Copa America.
Watford have a work permit for the player, who only made three league starts for Benfica last season.
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