A dominant seventh chord can be replaced by another dominant seventh chord whose root is a note contained in a diminished seventh chord based on the root of the original dominant seventh chord. For example, the “C7” (C-E-G-Bb) shares two notes in common with the “Eb7” (Eb-G-Bb-Db), “Gb7” (Gb-Bb-Db-E), and “A7” (A-C#-E-G) chords. Notice that the root of each of these chords is contained in the “Co7” (C-Eb-Gb-A) chord. Three examples of this type of substitution are shown below. (Excerpt from Chord Progressions For Songwriters)

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