The announcement comes after current owner Laurence Bassini earlier on Friday stressed the deal was off, stating the interested party "don't have the money".
But the Championship club have moved to set the record straight.
A club statement read: "Despite the recent remarks, the deal for the sale of Watford FC to the Pozzo family is progressing nicely. There is no issue with funds and both parties are hoping to conclude shortly."
The Hornets confirmed earlier this week they had agreed a deal in principle to sell the club to the Pozzo family. The Italians already own Serie A side Udinese and Spanish team Granada and looked well poised to take the reins at Vicarage Road, with Gianfranco Zola even heavily linked with a prospective role at Vicarage Road.
But Bassini, who bought the Hertfordshire outfit 15 months ago, on Friday afternoon told the Watford Observer: "They don't have the money (I want for the takeover) so I'm not doing the deal. They didn't provide the proof of funds and it is not transparent enough so that is that. They have so many partners but they don't have the money. The deal is definitely off. They do not have the money. What can I do?"
- Mergers, Acquisitions & Takeovers
- Sports & Recreation