Deeney has been in superb form for Watford, netting eight goals in ten games to inspire the club's bid for promotion to the Premier League.
The 24-year-old's hot streak in front of goal has not gone unnoticed with several Premier League and Championship sides keeping tabs on his situation.
Aston Villa are thought to be monitoring Deeney with Paul Lambert keen to bolster his attacking options in this month's transfer window.
Deeney's current deal expires at the end of the season and the club are keen to tie him down to a new long-term contract to secure his future.
A number of clubs are expected to watch Deeney in action during Watford's FA Cup clash with Manchester City as they weigh up moves for the former Walsall man.