Both Arsenal and Everton have reportedly sent scouts to watch the Swedish under 21 international on a number of occasions, but it seems that the Hornets are the club in pole position to sign the stopper.
Talks are said to have already begun between Watford and Gothenburg about Dahlberg with a £3.3m (€3.75m) fee being proposed by the Premier League side.
The 18 year old, who is seen as one of Europe’s most promising young keepers, was elevated to Gothenburg’s first team this season, after spending the 2016 campaign as second choice. He started the 2017 Swedish Allsvenskan as the club’s number one goalkeeper, and missed just one game due to suspension.
Dahlberg kept five clean sheets and conceded 39 goals in 29 league games before the season ended last month, with Gothenburg finishing tenth in the table.