The deal could be worth a combined sum of £24 million, as Gazzetta dello Sport have reported that the club are keen on signing the Serie A pair.
Peres could be a vital addition this summer
During his time with Torino, Peres has played as a right-back, wing-back and also in midfield, which has seen so much attention come down on him this summer.
Walter Mazzarri may be looking to bring a new style of football to Vicarage Road this coming season, as it is believed he may introduce a 3-5-2 formation.
And with Peres being able to play in the wing-back position, the addition of the 26-year-old Brazilian may be an important one this summer.
The wide man signed for Torino from Brazilian club Santos back in 2014 for €2.2 million, whilst his 80-yard run and goal against Juventus instantly brought him into the spot light.
Udinese may buy Vazquez and loan him to Hornets
It has been widely suggested that Palermo midfielder Vazquez may be bought by Udinese, who are also owned by the Pozzo family, and then loaned out to the Hornets thereafter.
The midfielder moved to Palermo for €4.5 million back in January 2012, and he was seen as the perfect replacement for the outgoing Javier Pastore.
He was then loaned out to Rayo Vallecano for the 2012-13 season, where he made 18 appearances, and scoring three goals in the process.
Vazquez never looked back from there on in, he provided the most assists in Serie A during the 2014-15 campaign, and has since earned two caps for Italy.
The attacking midfielder is quick, and extremely talented and would provide another dimension to Watford going forward with his good vision.