But the 26-year-old has struggled to make an impact since his club record move to Watford from West Bromwich Albion last summer and could be part of Horners boss Aidy Boothroyd's summer clear-out.
Rams chairman of football Adam Pearson confirmed Derby are trying to agree a deal which could net Watford up to £2million.
"Discussions are underway to bring Nathan Ellington to Derby County and hopefully we can bring them to a conclusion," said Pearson in the Evening Telegraph.
The Rams are also set to sign Ellington's Watford team-mate Stewart on a free transfer after he was released early from his contract.




