Watford are keen to bolster their attacking options and are ready to use their affliation with Udinese to bring the Nigerian to Vicarage Road.
Ighalo, who joined Udinese from Norwegian club Lyn in 2008, has spent the last four seasons on loan at fellow Pozzo-owned side Granada and Udinese are thought to be willing to loan him again next season.
The 25-year-old has confirmed talks are ongoing about a move to Watford and that it is the player's dream to play in England.
"I am in talks with Watford and I believe we are in final negotiations," Ighalo told Sky Sports.
"I am hopeful that those talks will go well and that the move will be finalised very soon.
"It has always been my dream to play in England and I am looking forward to playing for Watford.
"The Watford fans may not know a lot about me, but I promise to give my all and help them achieve their goal of getting back to the Premier League."