Alessandro Diamanti could cancel his Watford loan deal to sign for Atalanta in January, according to Sky Italia.
The Italian, who joined the Hornets on a season-long loan deal from Chinese outfit Guangzhou Evergrande in the summer, has struggled to make his mark at Vicarage Road.
Diamanti has clocked up just 65 minutes over three Premier League games for Watford, and Atalanta are prepared to provide the midfielder an escape route back to Serie A.
Atalanta want the 32-year-old to replace Maxi Moralez, who left for Mexican club Leon during the winter transfer window.
The Italian side have started talks and could quickly close an agreement for Diamanti with Watford.
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Diamanti, whose present deal with Guangzhou Evergrande runs until 2017, spent the second half of last season on loan at Fiorentina.
He made 15 appearances in all competitions for the Viola, scoring twice.
Diamanti, who counts Livorno, West Ham and Bologna as his former employers, earned 17 caps for Italy between 2010 and 2013.
