The Hornets are keen on Kolasinac, but also have other options they're pursuing.
The Watford Observer says the Bosnian international's contract expires in the summer, so he would be free to join permanently should the deal work out for both parties, although he would have to settle for a reduced salary at Vicarage Road.
However, a left back is top of the Hornets' list of priorities, with Adam Masina away at the African Cup of Nations with Morocco next month, leaving Danny Rose as the only naturally left-sided full back in the squad.
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