Jokanovic, 46, was best known in English football for having played for Chelsea for two seasons between 2000 and 2002, where he was a team-mate of former Black Cats boss Gus Poyet.
Poyet was sacked as Sunderland boss in March after a 4-0 thumping at the hands of Aston Villa, and whilst Dick Advocaat has replaced him, the Dutchman is only on a contract until the end of the season.
Regardless of which division Sunderland are playing in next season, it appears that Advocaat will be replaced by a long-term manager, with the Daily Mail reporting earlier this month that the Black Cats have an interest in Jokanovic this summer.
The Serbian had been in charge of Partizan Belgrade, Muangthong United, Levski Sofia and Hercules in a nomadic managerial career spanning Serbia, Thailand, Bulgaria and Spain before heading to Watford earlier this season.
On Saturday, Jokanovic led Watford to a 2-0 win over Brighton and Hove Albion to clinch promotion back to the Championship, and the Hornets will now be looking to seal the title on the final day of the season next week.
With a 60% win percentage at Vicarage Road, Jokanovic has been a roaring success - but The Sun believe that Watford could now lose Jokanovic, as he is stalling on a contract which would see him stay beyond June, which is when his current deal expires - but after promotion, it would be a surprise to see him depart.
If Jokanovic does leave Watford, Sunderland will certainly be favourites to snap him up - and fans would be hoping that he enjoys more success than former team-mate Poyet.