The midfielders are current down the pecking order at Anfield.
The British pair are currently struggling to get game time in Jurgen Klopp’s team and that situation could worsen in the summer.
Allen is set to enter the final 12 months of his current deal and so far there have been no discussions over an extension to that contract.
Former manager Brendan Rodgers did open negotiations with his ex Swansea City star, but Jurgen Klopp has not restarted those negotiations.
Allen himself has admitted that he is fighting for his future, and having started just 10 of the German’s 38 games in charge, is clearly down the pecking order.
Ibe, on the other hand, is highly rated at Anfield with many having hoped he would follow Raheem Sterling’s development after breaking through under Rodgers.
He has also failed to shine under Klopp, mostly playing mostly a bit part role while the likes of Roberto Firmino and Adam Lallana have made the wide roles their own.
Watford are keen to pray on that uncertainty according to the Guardian and could try to secure both players next summer.