A move to Nottingham Forest would have seen the Sheffield Wednesday striker reunited with Aitor Karanka, the manager who brought him to Middlesbrough in January 2016
Nottingham Forest supporters were united in their excitement at the prospect of Michael Dawson returning from Championship rivals Hull City.
The Forest manager is hoping to sign Watson on a free transfer this week.
Fulham host Nottingham Forest in the Championship this weekend.
Nottingham Forest were blocked from bringing Michael Dawson back to the City Ground by fellow Championship strugglers Hull City.
Nottingham Forest have signed Jack Colback on loan for the rest of the season from Newcastle United.
Nottingham Forest were highly active on deadline day, with Lee Tomlin one of a number of new arrivals.
Ashkan Dejagah has been a free agent since the end of last season but could return with Championship giants Nottingham Forest.
Aitor Karanka is yet to make a signing at Nottingham Forest.
The Algerian spent 18 months at the City Ground and is known to former Boro boss Aitor Karanka.
Newcastle United boss Rafa Benitez became the fifth foreign manager to secure promotion from the Championship, with Fulham and West Brom managers also sending their teams up to the top flight in the past.
Carvalhal is under pressure from some Sheffield Wednesday supporters.
With Aitor Karanka having been sacked this week following a dismal, winless run; HITC Sport are asking whether the Middlesbrough manager deserved the boot?