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The Latin word vicus was also applied to the smallest administrative unit of a provincial town within the Roman Empire, and to an ad hoc provincial civilian settlement that sprang up close to and because of a nearby official Roman site, usually a military garrison or state-owned mining operation.
Vaticanus then is a combination of Vatic + anus, just as Romanus is a combination of Rome + anus. Therefore, vaticanus collis or vaticanus mons mean the prophetic hill or mountain , which can be rephrased as the hill or mountain of prophecy. The word Vatican is just a shortened form of the word Vaticanus, just like Claudian is a shortened form of Claudianus, as shown above.