Didier Ndong is wanted on loan for the rest of the season by Watford with the option to make it a permanent deal in the summer for £8million, according to reports in France.
The 23-year-old midfielder has made 21 appearances for Sunderland this season but hasn't featured regularly since the start of November due to an ankle injury.
He has since made just two sub appearances and is attracting interest from Premier League side Watford.
Fresh reports in France suggest the Hornets have made a loan bid for the midfielder with the option of a permanent deal in the summer.
Cash-strapped Sunderland need to sell to free up funds for manager Chris Coleman this month, with the Black Cats boss currently looking at free agents and the loan market to bolster his options.
Sunderland linked with Burnley's Jon Walters.
Sunderland have today been linked with a loan move for Republic of Ireland and Burnley striker Jon Walters.
The veteran frontman has only started one first-team game for Burnley this season, their EFL game against Blackburn in August, since his £3million summer move from Stoke City.
Walters has yet to score a goal this season and has played just 37 minutes in the Premier League for Burnley as he's been hampered by injuries.
He played the full 90 of Ireland's World Cup game in Georgia back in September, and came off the bench last weekend for the last 15 minutes of Burnley's 4-1 FA Cup defeat at Man City.
One of the main stumbling blocks to a loan move to SAFC, of course, would be wages. Walters still has 18 months left on his Burnley contract after joining from Stoke.
New date for Birmingham City Championship game
Sunderland’s rearranged Championship game away to Birmingham City will take place on Tuesday, January 30 (KO 7.45pm) at St Andrew’s.
The game was originally due to be held on January 27 but it was postponed as a result of the Blues' progress in the FA Cup.
Sunderland squad needs overhaul
And finally, Ex-Newcastle United defender Steve Howey has backed Chris Coleman to turn Sunderland around - but says the squad needs a total overhaul.
Sunderland are bottom of the Championship ahead of tomorrow’s lunchtime kick-off against promotion chasing Cardiff City.
Howey said: "Sometimes a new manager can come in with the same players and turn it around, but there’s a rot in that club. It’s difficult, but it needs completely guttering out and starting again.
"I know the manager has tried to put kids in there and that can be difficult. Its boys against men at times, but hopefully during this January period he will be able to get a few people in.
"They are bottom of the Championship and last year they were in the Premier League so the turnaround is frightening. North East fans are very passionate about their teams and you get an awful lot of people turning up to watch poor football week in week out. It’s soul destroying.
"For me personally, I would love Newcastle, Sunderland and Middlesbrough to be in the Premier League. It would be great for the area.
"I think Chris will turn it around," he told AskFans.