Wooter has been capped by the Netherlands at both Under-18 and Under- 21 level. The Hornets will not be able to field him in tonight's Worthington Cup tie against Wigan, but they hope to receive international clearance in time to include the former Ajax player for the visit of Chelsea on Saturday.
It is the first occasion Taylor has paid money for a player since Watford were promoted to the Premiership - the previous three signings this summer were free transfers.
Leicester City's quest to reach Wembley for a third time in four seasons has been overshadowed by a boardroom row. As City prepared for tonight's Worthington Cup tie at Crystal Palace it emerged that Filbert Street is in turmoil.
The plc chairman, Sir Rodney Walker, stormed out of a meeting on Friday after coming under attack from the plc chief executive, Barrie Pierpoint. The football club chairman, John Elsom, also walked out of the meeting after coming under fire from the stadium development chairman, Roy Walker.
The latest upheaval follows the ticket furore surrounding last season's Worthington Cup final against Tottenham. Friday's meeting was arranged to discuss the lack of communication between the commercial and playing sides of the club that led to 27 players and backroom staff being charged by the Football Association last month.
Sir Rodney said: "The divisions within the club are long standing and deep rooted. I consider it a personal disappointment that I have not been able to bring the parties together. I may only have a short time left at the club and I now have to decide what information to share with the fans, shareholders and the media."