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In a statement posted on X (formerly Twitter) on Sunday afternoon, Udinese confirmed Pozzo's admission to hospital, adding that his family are confident that he will recover.
"Udinese Calcio announces that President Gianpaolo Pozzo is currently hospitalised at the Udine Hospital following a case of pneumonia," they wrote.
"The family, confident in the evolution of his clinical condition, wishes to thank all those who are showing their closeness and affection."
Pozzo purchased Watford in 2012 from former owner Laurence Bassini, and later transferred ownership of the club to his son, current owner Gino.
As well as Watford and Udinese, the Pozzo family also formerly owned Granada, who they acquired in 2009, before selling the Spanish outfit in 2016.