Tommy Smith is expected to leave Watford before the close of the transfer window but Newcastle United are looking to hijack his expected move to Brendan Rodgers' Reading.

A deal to take Smith to Reading was expected to be completed this week but the Royals are yet to offer an acceptable bid for the forward and yesterday Watford confirmed an enquiry had been made by a "top-end Championship club", believed to be Newcastle.

The Watford Observer understands Reading were considering a new offer last night and the Royals are also weighing up a move for Jobi McAnuff, although the former Cardiff man is lower down the wish list.

Smith turned down a £1.8m switch to Sheffield United, apparently because he does not want to move his family, and former Hornets boss Rodgers has already said Smith wants to join him at the Madejski Stadium.

However, Smith was a Newcastle fan as a boy which may influence his decision should a Magpies bid be accepted.

Stephen Hunt's move from Reading to Hull was expected to be the catalyst for Smith joining the Royals but yesterday Watford boss Malky Mackay confirmed no bids have been received for the 29-year-old.

He said: "There has been no bids at the moment for Tommy Smith but there has been an enquiry from a top-end Championship club."

When asked whether he expected Smith to make the trip to Bramall Lane, Mackay responded: "Absolutely".

"Right now he is involved in the trip to Sheffield United and is part of the squad for that game and is preparing like the rest of the players."

He added: "There has been speculation on his situation for weeks now and he has remained an excellent professional to deal with and there has been no change in his attitude towards the club."

Watford are trying to reduce their wage budget due to the club's Premier League parachute payments coming to an end this summer.

The sale of Lee Williamson, Theo Robinson, Leigh Bromby and Tamas Priskin has raised almost £3m for the club but a number of the squad are still on high wages.

Smith is in the final year of his contract and chairman Jimmy Russo has suggested it is unlikely he will sign a new deal.

But Russo has insisted the club will not sell the forward unless a club matches its valuation.

Russo told BBC Three Counties Radio: "The problem we have with Tommy is that he is one of the higher earners at the football club. That's been well documented.

"That level of commitment would be financially outside the model that we have introduced for the football club to enable stability and not be calling for another rights issue, as has happened on several occasions in the past few years.

"I've always said that the business has to stand up on its own two feet. I'm not prepared to go to banks and institutions to borrow money and we have got to recognise what we are at Watford FC.

"We're not Premier League. We're probably 30th to 35th in ratings in this country based on gates etcetera.

He added: "If there isn't enough money being generated through the turnstiles and the media then the only other form we have is to revert to sell the odd player or a player every year in order for us to meet the wages and trade in this division for the Premier League in the future."