The agent of Carlos Tevez says the striker will hold talks with Juventus about extending his contract with the club.
Wolves are eyeing free agent Kei Kamara as they try to apply for a work permit for the striker.
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.