Everton are currently four points behind Watford in the Premier League standings.
Southampton lost 2-0 against Watford in the Premier League clash on Saturday.
Watford forward Stefano Okaka was reportedly wanted by Wolverhampton Wanderers on transfer deadline day.
Watford are hopeful of signing two defenders before the transfer deadline.
Udinese goalkeeper Orestis Karnezis looks increasingly likely to join Watford rather than Newcastle United.
Watford keen to sign Leicester City's Islam Slimani. His potential move could pave the way for West Brom to sign Troy Deeney.
Liverpool winger Lazar Markovic most likely to join Watford before Thursday's transfer deadline.
Stefano Okaka looks to be on his way out of Watford with both Everton and West Brom keen.
Watford are reportedly considering making a move for the Leicester City striker.
West Bromwich Albion are reportedly interested in signing Watford striker Troy Deeney.