Southgate is told to raise funds in bid to sign Watson

Crystal Palace midfielder Ben Watson will join Middlesbrough in a £1.5million deal - provided the Premier League strugglers off-load striker flop Mido.

Boro have already held informal talks with Palace officials about a proposed deal but are not believed to have tabled an official bid.

Gareth Southgate has been told he has to raise his own funds and the manager has circulated Mido's name to a host of clubs in a bid to raise £4m.

Just under half of that sum has been ear-marked for Watson, 23, while Southgate is also keen on signing Aston Villa's Marlon Harewood in a £2.5m move.

Palace are resigned to losing Watson in the transfer window after he refused to sign a new contract and would accept a £1.5m offer rather than risk losing him for less in the summer.

The midfielder, who has also attracted interest from Queens Park Rangers, Reading and Birmingham, is a free agent in June but Palace would be entitled to compensation as he graduated from the club's academy.