The Sun claims that the Hornets are close to reaching an agreement which would see Sturaro move to Vicarage Road until the end of the 2018/19 season, with the option of a permanent transfer after that.
Sturaro is out-of-favour at Juventus, having played just 12 Serie A games for the Italian champions last season, and a number of Premier League clubs have been interested in bringing him to England.
The 25-year-old doesn't have the best stats in Serie A - three goals and five assists from 93 apperances - perhaps explaining why Juve are not fussed about seeing him go.
Sporting CP have apparently entered the race at the eleventh hour but Watford have a head start and it is thought that talks are at an advanced stage.
Javi Gracia, who took over from Marco Silva midway through last season, has been attempting to stamp his mark on the team with six new signings this summer, with a permanent move for Gerard Deulofeu chief among them.
However, the sale of Richarlison to Everton for £50m last month means that Gracia still has money to spare and Sturaro is not the only player he wants to sign before tomorrow's deadline.
Watford have also launched a £10m bid for Southampton midfielder James Ward-Prowse.