The Hornets are set to sign Crystal Palace and Algeria midfielder Adlene Guedioura on a short-term loan, the Watford Observer understands.

The 29-year-old has only made six appearances for Palace this season and is keen to secure regular football before the African Cup of Nations, which starts on January 17.

We understand Watford have been looking to sign another attacking centre midfielder as competition for Almen Abdi, with Lewis McGugan asking to leave the club on loan and joining Sheffield Wednesday until January 1.

We have been told the club will look to sign another attacking centre midfielder in January once Guedioura's loan expires at the turn of the year.

Guedioura first moved to England in January 2010 when he joined Wolverhampton Wanderers, initially on loan before the move was made permanent by Mick McCarthy that summer.

He played 38 times for Wolves during his two years at the then Premier League club and scored three goals, before a move to Nottingham Forest in January 2012.

The midfielder became a fans favourite during his 19 outings on loan and the switch was again made permanent in the summer, under new manager Sean O'Driscoll.

A return to the Premier League followed on the summer transfer deadline day in 2013 when Ian Holloway brought him to Crystal Palace but has only made 15 appearances in all competitions in the last 15 months.

He has made four substitute outings in the Premier League this season and started twice in the Capital One Cup. His last competitive run-out for Palace came a month ago today as a 73rd-minute replacement.