The 21-year-old blasted 22 goals for the Hornets, who reached the Championship play-off final, but his rise to prominence has meant Arsenal, Tottenham and Fulham are all believed to be interested in the Czech international.
And the Udinese frontman is now desperate to test himself at the top level.
"I can't imagine him playing Championship again right now," Chovanec told the Evening Standard.
"We discussed it with the boy and he would like to play with the top players on the top level. It's difficult because he was very happy at Watford, but if you get the opportunity to play Premier League or German Bundesliga would you say no?
"He is the number one Czech international striker and he would like to play the same level competition as Petr Cech is doing."
Watford and Udinese are both controlled by the Pozzo family, who are eager for Vydra to be reunited with Gianfranco Zola next season.
"They would like him to go back to Watford next season because they want to make the team strong and they want to finish the job," added Chovanec.
"The Pozzos are always saying if the player wants to leave and the offer is good enough then let's discuss. At the moment he would like to play in the highest league. He had two or three proposals from Premier League clubs in January and he has had fresh proposals."