The Watford Observer understands the Hornets have offered a new contract to Troy Deeney and are confident he will stay at the club.

Watford rejected a £25m offer from Premier League champions Leicester City last weekend and the Foxes have made the striker one of their main targets this summer.

But the Hornets are determined to hold onto their captain and a lucrative new deal could be enough to keep him at Vicarage Road.

It is believed a meeting was held yesterday with chief executive Scott Duxbury and Deeney's agent Simon Kennedy. 

Deeney, who signed a new five-year contract last summer, is understood to be meeting with Duxbury in the coming days and the Hornets remain confident he will stay at the club.

Watford have consistently maintained the 27-year-old former Walsall striker is not for sale despite Leicester's efforts to sign him. 

Deeney, who scored 13 goals in the Premier League last season, is the Hornets' talisman and the club consider him as crucial to their ambitions of establishing themselves in the top flight.