The Ivory Coast international is away at at African Cup of Nations at the moment, but it has been reported by The Mirror that a deal could be struck between the two sides in the coming weeks.
Walter Mazzarri's side have slumped into a poor run of form in the last few months and the Italian manager is looking to add to his attacking options this month.
Hornets linked with winger Gradel
The Hornets were held to a goalless draw at the weekend on an afternoon when everyone associated with the club paid their respected to legendary boss Graham Taylor, who passed away last week.
Gradel will provide an attacking option for Mazzarri, whose side is hampered with injuries at the moment, but the wide man has pace and strength in abundance and would be a great addition.
The 29-year-old hasn't started a Premier League game for the Cherries this season, and has only came off the bench on five occasions.
Winger has plenty of experience
Gradel started his career with Leicester City and after loan spells with Bournemouth and Leeds United, he signed permanently for the latter side in 2011.
The winger scored 22 goals in 63 appearances and moved to Ligue 1 side Saint-Etienne a season later, and after making 101 appearances in his four years in France, he move back to England with the Cherries.
Gradel has plenty of international experience - he has played 45 times for his country and scored nine goals, and came off the bench in the goalless draw with Togo yesterday.