Watford have received a double boost with the arrival of Middlesbrough winger Adam Johnson on loan and Jay DeMerit's decision to sign a new deal.
England Under-21 international Johnson, 20, will spend three months on loan at Vicarage Road as he looks for first-team experience.
Meanwhile, DeMerit has signed a one-year contract extension, keeping him at the club until 2010.
"Jay's a future captain of club and country," said boss Aidy Boothroyd.
"I'm delighted to have secured him for the future because, as I've said before, it's important to keep the crown jewels."
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