The Hornets' schoolboy striker Ogo Obi is currently on trial at Premier League side Manchester United, the Watford Observer understands.
Watford have been in talks with the 16-year-old for several months over a scholarship with a one-year professional contract attached but an agreement has yet to be reached.
Obi appears to be looking for other options and is currently training with United after being given permission by his parent club.
Should he leave the Golden Boys, the Hertfordshire club would be owed compensation due to the player's age.
The Hornets announced the names of their first-year scholars for this season in their Ipswich Town match day programme on April 19 but Obi was not listed.
Watford did confirm at the beginning of May that they were still in talks with him over a scholarship.
Last summer Obi scored ten goals in five games during the Milk Cup Junior Section to win the competition's Golden Boot, which resulted in a couple of national newspapers claiming Arsenal and Liverpool were interested in the then 15-year-old.