The 31-year-old underwent minor surgery in August after playing through the pain during the Hornets’ opening two Premier League games this season.
Since his operation, Watford have sacked Javi Gracia and brought back Quique Sanchez Flores as manager, but they remain bottom of the table and without a win after eight league matches.
Deeney, who is expected to start running again later this month after working on the anti-gravity treadmill this week, told the club’s website: “I want to do more, but they are holding me back for the right reasons. It’s exciting but I also get frustrated as I want to do more and do the next thing.
“I understand the process, though, and the medical staff are looking after me really well, so we’ve knocked another week off (the recovery time). I think they are a week or 10 days away from letting me go and run properly outside.”
Deeney, who has been at Vicarage Road since August 2010, says his knee “feels brand new” and expects Sanchez Flores to call upon him at the first possible opportunity.
“I know when I’m aiming to be back. It’s not too far away now. I’m just starting to see the light at the end of the tunnel,” Deeney said.
“They are holding me back for my benefit, but when they let me go there will be no stopping me, so they are just trying to rein me in until it’s safe medically and then I’ll be going and pushing myself.
“I’m just ready for it. I know what to expect and that I will have to fight for my place. I don’t think there’ll be any playing 45 minutes for the under-23s first. I’ll be expected to go straight in and I’m ready for everything that is coming.”