Will Hughes looks increasingly likely to leave Watford after turning down the option of a new contract.

The midfielder was offered a new five-year deal which the Watford Observer understands has now been rejected following discussions and deliberations with his representatives.

With only one year remaining on his current contract the club's options are now to move Hughes on for a fee this summer, or risk losing him for free at the end of the season.

Aston Villa remain interested in a potential signing, as do Newcastle, although the latter's financial situation is likely to rule them out of a bid at this moment.

Watford are not expected to return with a better contract offer at this stage, although that could change depending on the rest of their transfer business this summer and whether or not they can retain the services of Nathaniel Chalobah, who is in a similar situation.

Chalobah has not yet turned down his contract offer, but has not signed it either and is understood to be assessing his options before making a decision, while working his way back to fitness.

Hughes meanwhile is now considering options away from Vicarage Road ahead of the new season.