Vargas, who spent last season on loan with QPR, is wanted by Slaven Bilic as the back-up striker for Diafra Sakho. Due to a number of injury problems - Enner Valencia and Andy Carroll are both on the sidelines - head coach Bilic wants a temporary forward to provide cover for Sakho, the only fit striker available.
25-year-old Vargas is not wanted at Napoli any more, and the report states that the Hammers are planning a move for the Chilean forward.
The east London side want him on a season-long loan deal, with a loan payment of roughly £1 million. Most importantly, however, is the fact that they do not want an obligation to purchase him outright in the deal, as Bilic believes Vargas would only be cover for the season whilst Carroll and Valencia are out of action.
It is also stated that he is not even training with Serie A side Napoli, who are looking to push through a deal to take Vargas to England after holding progressive talks with the Hammers.
It is expected that West Ham’s deal for Vargas is formalised in the coming days, with both clubs close to reaching an agreement for the loan transfer of the player to the Boleyn Ground.