The Hornets are attempting to sign Nyron Nosworthy on a permanent deal, the Watford Observer understands.
Nosworthy has impressed at Vicarage Road during his two-month loan spell, which expired after Saturday's FA Cup win over Bradford City.
It was unclear whether Watford would want to sign Nosworthy permanently as he was initially brought in as a direct replacement for the injured Martin Taylor, who is now returning to full fitness.
Nosworthy joined the Hornets in October after being frozen out at Sunderland by Steve Bruce but his replacement, Martin O'Neill, has said he was keen to assess the centre back before making a decision on his future.
But we understand Sunderland are willing to sell the player and at 31 years of age, Nosworthy would understandably not demand Premier League wages.
The Black Cats are unlikely to require a significant transfer fee either as the player only has six months left on his current deal.
When speaking to the Watford Observer recently, Nosworthy said: “There have been conversations [about a return]. It has gone a bit quiet but I am just going to let that slide and concentrate on the football.
“I’ll let my football do the talking and if it comes to it then we will sort it out.”
“It would be a fresh start at Sunderland and everyone wants to play in the Premier League,” Nosworthy continued.
“But there is nothing more important than playing games at first team level and I thank Watford for giving me the chance.”
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