The pair worked together at Getafe.
Current Watford boss Quique Sanchez Flores worked with Sarabia at former club Getafe and he would be willing to reunite with the player at Vicarage Road this month - according to as.
The same report claims that Watford made a €2 million (1.5 million) offer for the player back in the summer and are now hoping to get him at a much lower price.
Sarabia's contract with Getafe expires in the summer and with that in mind The Hornets are hopeful Getafe might just cut the price on the player.
Sarabia is a former Real Madrid youth product who played for Spain at every level up until under-21s. His career has not rocketed like he would have hoped after joining Getafe in 2011 but he is still regarded as a player with bags of unlocked potential.
This season he has played 16 times for Getafe scoring four goals - three of which have come in his last six games - so he is currently in form.
Watford may wait to get him for nothing in the summer but on the other hand if they could bring him in now he could be a massive help to the end of their excellent Premier League return.