The Pozzo family also own Serie A side Udinese and Spanish side Granada.
A club statement read: “The board of directors, acting on behalf of Watford Football Club, is pleased to confirm that agreement has been reached in principle for the transfer of ownership to the Pozzo family.
“Representatives from the family have been in discussions with Watford Football Club and both parties have agreed initial terms.
“Further information from Watford Football Club will be released, as appropriate, via its official website, watfordfc.com.”
