Dyche took him to Vicarage Road last season on loan and he went on to make 12 appearances for the Hornets, all but one of them having started the game.
The one substitute appearance saw him score his only goal for Watford. He replaced Prince Buaben at half time and went on to play a significant part as Watford came from 2-0 behind to beat us 3-2, and scoring the second and equalising goal.
He was previously with Helsingborg and Liverpool and joined Fulham in the summer of 2010 as part of the deal that took Paul Konchesky to Anfield.
His Fulham debut came after his return from Watford as a substitute in a home Premier League game against Norwich, before getting his first start in April last year in a 3-0 win at Bolton.
This season he's scored three Premier League goals but hasn't featured in the league side since 12th January and it is looking very likely that Martin Jol will once again let him go out on loan.
Away from club football the 21-yearold Kačaniklić has played five times at full international level for Sweden.
Suggestions, coming from his agent Miro Jaganjac are that the deal has been completed and Kačaniklić will be in the squad tomorrow at the Valley.
Source: Clarets Mad