The Hornets are close to agreeing a new contract with their captain Troy Deeney, the Watford Observer understands.
We understand the Golden Boys have been in talks with Deeney for around two weeks and he is set to sign a new deal.
Sky Sports have reported it will be a four-year contract but we understand it will be a three-year deal.
The 26-year-old has been the subject of several bids from Premier League clubs this summer but the Golden Boys have been reluctant to let their skipper leave.
We reported 11 days ago that the Hornets would not be selling their striker unless an absurd offer was received and we believe they have been in contract talks since around that time.
QPR and Leicester City have had offers of between £6.5m and an initial £10m rejected by Watford this summer.
Prior to those bids, Swansea City and Burnley had offers turned down while Everton and Norwich City were also interested in Deeney in the past.
Last summer Hull City had a bid rejected by the Hornets for last season’s top scorer.
Deeney has scored two goals in four games during this campaign and had netted 45 goals in 91 outings during the previous two seasons.