The 21-year-old has finally started to make an impact in the senior set-up this season, playing three Premier League games, although all of them have been substitute appearances.
The youngster even managed to net his first senior goals for the Wearside club, scoring in the league in a 3-1 loss at home to Norwich, before following that up with one strike in a 6-3 win over Exeter in the League Cup.
This show form has seen Watmore earn recognition at Under-21 level for England, and with people starting to take notice of him, Sunderland are keen to extend his contract.
His current deal expires at the end of this campaign, and with the club reportedly keen to start promoting their own home grown players, tying down Watmore’s future is the first step for head coach Dick Advocaat to take.
There are no indications as to whether Watmore is open to extending his current deal, but the report states that Sunderland are keen to send him out on loan when the contract is agreed.
With chances of consistent first-team football limited this season at the Stadium of Light, Advocaat wants to send him out to a Championship club where he can play competitively for a whole campaign to ensure his development progresses at a natural rate.