Watford's preparations for their return to the Premier League are already well underway as manager Xisco Munoz has decided to make a brisk start to his summer transfer business.
After opting to seal deals for Kwadwo Baah and Mattie Pollock last month, the Hornets signed Imran Louza from French side Nantes for a reported fee of £8m on Monday.
Despite now having a host of midfield options at his disposal following the arrival of the 22-year-old, Munoz was recently linked with a move for one of Brazilian football's emerging talents.
A report by news outlet UOL Esporte last month suggested that Watford had submitted a €12m (£10.3m) bid for Palmeiras ace Danilo.
However, in an update concerning the Hornets' pursuit of the midfielder, it has been revealed that the club have suffered a setback.
According to journalist Jorge Nicola (as cited by Sport Witness), Palmeiras have rejected Watford's offer and are only willing to open talks if the club offer a sum in excess of €15m (£12.8m) as they only own 70% of Danilo's economic rights.
It is understood that the midfielder also has a €100m (£85.9m) release clause included in his current contract which is set to run until 2025.
During his time at Palmeiras, Danilo has emerged as a key player for the club as he has made 55 appearances over the past two years.
Used predominately as a defensive midfielder by the Alviverdre, the 20-year-old helped the club win the Copa Libertadores last season by featuring on 11 occasions in South America's biggest cup competition.
GIVEMESPORT's Joshua Cole says...
Having failed with their initial approach for Danilo, it will be intriguing to see whether Watford decide to make an improved offer for the midfielder in the coming months.
Whilst Danilo has illustrated some signs of promise for Palmeiras, he only managed to average a WhoScored match rating of 6.38 last year which suggests that he is still struggling for consistency at his age.
With there being no guarantee that the midfielder will be able to adjust to life in the Premier League, it could be argued that the Hornets ought to steer clear of signing him this summer as they are already able to call upon the services of Louza, Tom Cleverley, Nathaniel Chalobah and Will Hughes.
By switching their focus to drafting in individuals who know exactly what it takes to compete in the top-flight, Watford could potential achieve a relative amount of success in this division under the guidance of Munoz.
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