"Ozan Tufan's season-long loan from Fenerbahce to Watford has been terminated by mutual consent between the two clubs," the English Premier League club said in a statement.
Tufan, 26, had nine appearances for Watford after his arrival in August.
Fenerbahce also confirmed the Turkish central midfielder's comeback.
The Yellow Canaries said on Twitter that Tufan will sign a contract with Fenerbahce after completing his medical checkup in Istanbul.
Tufan, a pure Bursaspor product, scored 21 goals and made 24 assists in 174 appearances for Fenerbahce.
He scored nine goals in 65 international caps for the Turkish national team.
Tufan was part of Turkiye in the UEFA EURO 2016 and 2020.
