Pudil made 40 appearances on loan at Watford last season and he is close to securing a return to Vicarage Road, with both clubs owned by the Pozzo family.
He enjoyed his time with Gianfranco Zola's side and the Czech is looking forward to playing for the Championship club again.
"Last season was the best in my career, even if we did eventually miss out on winning a place in the Premier League," the 27-year-old told chovanecsport.cz.
"We were playing excellent football. We have fantastic fans and I am glad that I can continue at this club.
"It is also ideal for my family. We have settled down in London and love it there. Our son goes to pre-school and my girlfriend wants to study there."
Matej Vydra was Watford's star performer last season during a loan spell from Udinese and Pudil is waiting to see where his fellow Czech will be playing in the coming campaign.
Pudil added: "He started the pre-season preparations with Udinese and his future is being solved in these next few days.
"I sort of counted on that (Vydra leaving) during last season when he was scoring on a regular basis. I knew his path would be different to mine.
"I wish him all the best in his career and we will certainly stay in touch. Let's see where he goes to."