Aston Villa are challenging Tottenham for Watford goalkeeper Scott Loach.

The News of the World says cash-strapped Hornets are ready to sell their £3million-rated prize asset to the highest bidder in January.

Tottenham were considered as front-runners for the 21-year-old's signature - but Villa boss Martin O'Neill has had him watched twice recently.

The England U21 star has been in sparkling form this season and with Watford deep in financial trouble, the club are ready to sell their prized asset to the highest bidder in January.

The Hornets need to raise £5.5m by June or face going under and Loach is, by a long distance, their most sellable asset. They also feel they have adequate back-up in experienced number two Richard Lee.