The 24-year-old midfielder only joined the Turkish giants from Roma in January, but he has emerged as a summer target for Unai Emery's side following the news that Emiliano Buendia is facing several months on the sidelines with an ACL injury picked up in training on Wednesday.
According to journalist Fabrizio Romano, Villa are preparing to make a formal offer of an initial loan deal with an option to buy Zaniolo, who is said to be keen to join the Premier League club this summer.
Villa sporting director Monchi will work closely on the proposed deal and he is familiar with Zaniolo having signed the midfielder for Roma in 2018 during his time with the Serie A club.
Emery has confirmed Villa's interest in Zaniolo, telling reporters: "He is one on the list and there are others. There could be one or more with the potential to come here. Right now it is not 100% clear who they are."
Zaniolo recorded 24 goals and 18 assists in 128 appearances during his three-and-a-half-year spell with Roma, before chipping in with five goals in 12 games for Galatasaray in the second half of last season.
Staying with Villa and striker Cameron Archer is reportedly attracting interest from newly-promoted Sheffield United.
The 21-year-old spent the second half of last season on loan in the Championship with Middlesbrough, scoring 11 goals in 20 league appearances including two goals in a 3-1 win away against Sheffield United.
Paul Heckingbottom is in the market for a new centre-forward following the departure of Iliman Ndiaye to Marseille earlier this month.
According to YorkshireLive, Archer is among a number of attacking targets for Sheffield United and Heckingbottom has included the striker on his shortlist that has been submitted to the club's board.
Archer, who still has four years left on his contract at Villa Park, has only made 13 senior appearances for Aston Villa, while he has featured 11 times for England Under-21s, scoring six goals.
Moving to the West Midlands and Wolverhampton Wanderers are closing in on the signing of West Ham United defender Aaron Cresswell, according to a report.
The 33-year-old is the longest-serving player within West Ham's current first-team squad, and has made 331 appearances in all competitions since joining the club from Ipswich Town back in 2014.
Nevertheless, Cresswell has entered the final year of his contract and has been tipped to leave the London Stadium as he is not assured of regular starts under David Moyes.
Football Insider reports that Wolves had seen an opening bid of £2.5m for Cresswell rejected by West Ham, who are holding out for £4m.
However, the report adds that Gary O'Neil's side are keen to table an improved offer and wrap up a deal for the experienced defender, who can operate at either left-back or centre-back.
Wolves have endured a difficult summer transfer window thus far amid Financial Fair Play concerns, with free agents Matt Doherty and Tom King the only two new players to have been added to the first-team squad.