The striker had previously been linked with a move to Manchester United by calciomercato.com.
It was reported scouts from Old Trafford had watched the forward numerous times.
And it was also claimed AC Milan were keen on the Brazil under-20 international.
But Watford looked to have stolen a march on their rivals after announcing the signing of the player today.
Video of him playing at former side Fluminese shows what he could offer the London club.
The 20-year-old has impressed during his time there, scoring six goals and assisting three in 15 appearances this season.
He is comfortable operating as a traditional centre forward or out on the wing.
And the video shows he can finish with both feet and has composure in front of goal.
Sky Sports News reported today the Brazilian has signed a five-year deal with Watford, although there were no details over the fee.
