Atletico Madrid have offered Argentina international Nicolas Gaitan to Watford as they look to free up funds in order to sign Chelsea hitman Diego Costa, despite being held under a transfer embargo until January.
This is according to Duncan Castles, who reports on Twitter that Diego Simeone's side are looking to offload the former Benfica man initially on a season-long loan deal to Marco Silva's Watford worth a reported €2m with an option to buy.
The 29-year-old joined the Spanish side in a £19.7m move from Benfica last summer, but has endured a disappointing year in the Spanish capital and now looks surplus to requirements after recording a mere four goals and five assists.
Madrid are hoping to tie up a deal for Costa in this window, with the intention of loaning him out until January when they can officially begin to register new players.
His signing should be quite a costly one, with Chelsea reportedly holding out for a £50m fee in addition to the Brazilian born Spaniard's rumoured £185k weekly wage.
Gaitan was considered to be one of Europe's hottest prospects not so long ago, and could turn out to be a coup for Watford should a move to Vicarage Road materialise for the winger. In addition to this, a €2m loan fee with no obligation to buy resembles a move with minimal risks for the London side, and could be a move that Silva may be interested in.