Real Madrid are interested in signing Malaga attacking midfielder Isco, according to reports in Spain.
Liverpool boss Brendan Rodgers expects Andy Carroll's future to be decided quickly this summer.
Watford have released Matthew Whichelow by mutual consent. The 21-year-old made 24 appearances for the club after coming through the club's academy.
After scoring three goals in his debut season in 2010/11 the midfielder struggled to nail down a place in the first team squad and was sent on short loan spells at Exeter, Wycombe and Accrington.
He has not featured this campaign under Gianfranco Zola, with his last senior appearance coming back in October for Accrington.