Northampton manager Chris Wilder has confirmed interest from Premier League and Championship clubs for Ivan Toney.
Notts County full-back Jordan Cranston has left the club by mutual consent.
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.