"The England Under-21 international midfielder has signed a five-year deal at Vicarage Road and joins for an undisclosed fee," read the Watford website.
The footballer has played 97 times for England at various youth levels.
The club website further said that the 22-year-old excelled during 42 appearances while on loan with the Hornets during the 2012/13 season, scoring five goals.
In his career so far, the footballer had spent temporary spells with Nottingham Forest, Middlesbrough, Burnley, Reading and Napoli, before returning to the first-team fold at Stamford Bridge last season.
He featured 15 times for Premier League champions Chelsea during 2016/17, making his first league start for the Blues against Watford back in May.
Image: Watford Twitter page
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