The 28-year old Argentine-born Italy international, who joined the Saints from AS Roma in the summer, allegedly headbutted Fonte at training on Thursday which left the Portuguese defender with serious facial injuries.
Reports suggest that Osvaldo's 'brutal' attack on Fonte 'left blood everywhere' forcing the south coast club to suspend him from playing a fortnight.
"Southampton Football Club has today suspended striker Dani Osvaldo for two weeks, following an incident at the club's Staplewood training ground," read a club statement.
"The club has taken swift and proper action for what it considers a breach of the conduct expected of its players.
"Southampton will be making no further comment on this matter."
Additionally, it has been reported that Southampton have placed the fiery Osvaldo on the transfer list despite paying around £15million for him in August last year.
Osvaldo has a history of violence which includes him striking then-Roma teammate Erik Lamela (now of Tottenham) at training in 2011 and being handed a three-match ban and £40,000 fine for becoming embroiled in a touchline fracas at Newcastle United in December.
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