The English striker has been the key man at Vicarage Road for the past two seasons, with 20 goals leading the Hornets to the 2013 play-off final, before netting an even greater tally of 25 last season.
Despite his goalscoring exploits, Watford have failed to achieve promotion to the Premier League, and a host of clubs have been circling around Deeney this summer.
High-profile deals for Ross McCormack and Leonardo Ulloa have likely increased the price for the 26-year old - who is younger, and has scored more goals than £11 million valued McCormack over the past two seasons, as well as being a homegrown player - and newly promoted Leicester City have already had two bids rebuffed by Watford.
Despite the Foxes' insistence that Deeney will be playing for them next season, a number of things have happened which hint at Deeney's preference to stay with the Hornets for another year as they fight for promotion again.
He is captain
Last week, head coach Beppe Sannino confirmed what had been rumoured for much of pre-season; that Deeney would be captaining the Hornets this season. The striker deputised for Manuel Almunia last season and has been captain for all of the pre-season friendlies this summer.
He is already adored by the Watford faithful, with many calling for his promotion for a long time, and him captaining the club to promotion is something both he and the fans would love to see.
Deeney is regarded as the key man in the dressing room, with a belief that he runs the social aspect of the club, and it is unlikely that he would want to become just one of a group at another club.
Devotion to the club
It was Watford who gave Deeney his chance following his jail sentence, rather than ending his contract, and he has repaid the Hertforshire club an unbelievable amount.
He shows absolute faith to the Hornets in interviews and on social media, and actively takes part in community events run by the club. As mentioned previously, captaining the club he adores to promotion would be a better prize than Premier League survival with any other team.
The monetary benefits of moving to the Premier League may outdo those Watford can offer, but the family-style atmosphere is unlike any other club - and that is worth staying for.
The Watford project
Upon last season's arrival of the Pozzo family as club owners, they planned a project to see Watford promoted to the Premier League over a period of time. While their first year of ownership brought defeat in the play-off final and last season brought a mid-table finish, three years was always intended to be the benchmark for the arrival in the Premier League.
For Deeney, it remains the last year of which the club have fought hard for promotion, and if that is on course, he has no reason to leave. The playing squad has been strengthened to suggest that promotion is a real possibility, and Deeney is a key man in that team.
However, should the club be out of the running by Christmas, the striker could leave in the January transfer window as he searches for his own place in the Premier League.