Watford manager Marco Silva was prepared to make a bid for Lazar Markovic of around £10 million, which was rejected by Liverpool in June, according to the Sun.
But Andre Carrillo appears to be of more interest for Watford now as the former Sporting Lisbon player may be interested in teaming up with his old manager at Vicarage Road, reports the Sun.
When Silva was manager at Hull City he tried to sign Carrillo, but he was rebuffed, says the Watford Observer.
Carrillo, 26, helped Benfica win the Portuguese Liga and cup final last season. But Carillo only scored twice in 20 appearances. The Portuguese champions were open to talks, if Watford would pay €1 million to take the player on loan, according to the paper A Bola.
The problem has been that Carrillo preferred to fight for his place in Benfica's first-team.
However Silva is still keen to sign the Benfica player. For Watford, Carrillo is clearly a far cheaper deal than the prospect of having another go at trying to relieve Liverpool of Markovic.
Carrillo is able to play as a second striker as well as a winger, and Silva may like that flexibility about the Peruvian international player.
He played in the week for Benfica in the second half against Real Betis in a friendly and came on in the second half after 72 minutes, says RPP. It is not known if Watford sent someone to watch him though.
Watford's continued interest in the player may have been heightened on hearing that Stoke City have tried to step in for the player, according to TalkSport.
If there is any hope of Carrillo coming to England, Silva wants to make sure that it is to Watford and until the player signs an extended deal at Benfica, the Hornets' interest is likely to remain.