Watford had been linked with the forward, but appear to have pulled out of the race.
The Cherries are set to pay the Italian side £1.1m as part of the deal that would see Iturbe move to Dean Court until the summer, Sky Sports suggests, but they will have the opportunity to make the deal permanent for £16m at the end of the season.
The move would represent something of a surprise, should Eddie Howe's men complete a deal, as while Iturbe looked destined for a move to the Premier League next month, it seemed that it would be the Hornets that he would be joining.
Sky Sports reports that the Argentinian held discussions with representatives from Watford on Monday, and even underwent a medical. However, news of Bournemouth's interest appears to have led to their decision to pursue other targets.
The youngster has struggled to make an impact for the Giallorossi this season, scoring just once in 12 Serie A appearances. But with a loan move ensuring that Iturbe will head to the south coast without the pressure of a hefty price tag, he has the opportunity to prove that Watford were wrong to give up on him, by inspiring Bournemouth's survival bid.