England goalkeeper Tom Heaton has committed his future to Burnley by signing a new contract until June 2018.
Wolfsburg have moved to sway Newcastle away from a move for Bas Dost by claiming the striker would command a fee around the £29million mark.
The Spanish club, also owned by Watford supremos the Pozzo family, confirmed on their website that Iriney has agreed a season-long deal at Vicarage Road.
The 32-year-old has spent more than 10 years in Spain and also played for Rayo Vallecano, Celta Vigo, Real Betis and Almeria.
Watford caused controversy last season by bringing in a host of loanees from Granada and the other Pozzo-owned club, Udinese.