Watford are demanding €30m to sell Roberto Pereyra.
Tuttosport says Watford's owners, the Pozzo family, are prepared to sell with Torino keen.
However, the Serie A outfit will not consider doing business at the Pozzo's current price.
For his part, Pereyra is keen to return to Italy, where he spent time with Juventus and Udinese.
The Argentina international has been at Vicarage Road for two years.