Torino are in the Europa League preliminary rounds and therefore have an extra budget to ask Watford for €20m-rated Roberto Pereyra.
The Granata finished seventh in Serie A, which was not valid for a place in UEFA competition.
However, as Milan were excluded from the Europa League due to Financial Fair Play violations, it bumped sixth-placed Roma straight into the group stage, with Torino inheriting their preliminary round spot.
This boosts the transfer budget at Toro’s disposal and Sky Sport Italia claim it’s the catalyst President Urbano Cairo needed to raise the bid for Pereyra.
Coach Walter Mazzarri brought Pereyra to England and is eager for a reunion with the former Udinese man.
The 28-year-old Argentina international scored six goals with three assists in 36 games for Watford this season and his contract runs to June 2021.