The Watford Observer reports that their sources have confirmed reports that the Hornets have made a bid for the United youngster.
The Hull Daily Mail also reports that Brady is expected to be joining Hull before the end of the week.
Brady has spent much of the last 18 months on loan at Hull.
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Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.
Newcastle United are staring down the barrel of relegation to the Championship for the second time in the past eight years.