Vydra, 28, fired Watford to promotion in 2015 and they are keen to bring him back on loan with a view to a full-time deal if they go up.
Bournemouth want a similar transfer as they look for more goals to make a quick return to the top level.
In their case they would have to move Josh King first.
Burnley would sell Vydra for the right price and have turned down various swap suggestions from both parties as they plan to sign their own targets.
However, Vydra as a buy and on good wages is a big gamble for Watford and Bournemouth who will have major cutbacks if they stay down.
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