Liverpool boss Brendan Rodgers says Raheem Sterling "is being led by his representative" as he seeks a move.
Aston Villa manager Tim Sherwood has revealed in-demand defender Ron Vlaar has told him he wants to stay at the club.
The 26-year-old has emerged as a hot property on the transfer market this summer after a pair of very successful seasons at Vicarage Road.
The former Walsall man scored 20 goals in all competitions in the 2012/13 season and then bagged 25 last term.
Aston Villa, Newcastle and Burnley are other top-flight clubs who are believed to be interested in Deeney, who joined Watford in 2010.
And clubs seen as possible leading Championship promotion contenders in the form of Norwich, Fulham, Wigan and Nottingham Forest are also reportedly monitoring the prolific forward.