Sheffield Wednesday have signed Watford midfielder Lewis McGugan for around £300,000, according to the Watford Observer. 

The 26-year-old had been expected to leave Vicarage Road this summer with Wednesday strongly linked a move for the midfielder, who had two loan spells with the Owls last season.

While the fee is undisclosed, the Watford Observer understands the South Yorkshire outfit have paid around £300,000.

McGugan joined the Hornets from Nottingham Forest in 2013 and largely impressed during his first season despite the club's disappointing league finish, scoring 11 goals in 37 appearances.

He fell out of favour under the stewardship of Slavisa Jokanovic and joined Wednesday on loan in November, making seven appearances before returning to Watford in January.

Jokanovic stopped McGugan and four other players from training with the first team and he left to re-join the Owls on loan at the beginning of February until the end of the season.

The midfielder scored three goals in 15 games in his second loan spell, and despite the Hillsborough outfit sacking Stuart Gray at the end of the season, their interest in the player never faded.

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