Watford are in advanced talks to sign Spain international midfielder Mario Suarez from Fiorentina, Sky Sports understands.
The deal being discussed for Suarez is believed to be for an initial loan deal with a view to a permanent transfer, but Liverpool are also said to be interested in the player.
The 28-year-old played over 120 matches during two spells for Atletico after coming through the youth ranks and worked under current Hornets boss Quique Sanchez Flores.