Hibernian are in talks with the owners of Watford over the future of Scotland defender Ryan Porteous.
The Pozzo family, who have been in dialogue with the Scottish Premiership club for several weeks with a view to signing Porteous for Italian top-flight side Udinese, also own Watford.
And they are now minded to recruit the 23-year-old for the English Championship promotion chasers.
A deal could be concluded at some point this week.
Another Championship club, Blackburn Rovers, tabled an offer last week, while a bid in the region of £250,000 from Udinese was rejected.
There has also been interest - but no offer - from French club Toulouse.