The Sun says the Hornets had a £500,000 bid rejected in January and have been linked with a fresh bid for the England U19 defender.
But a Watford source said: "The club have moved on in its list of targets and priorities.
"A bid was turned down in the last window and there is no longer any interest."
Stevenage - who are believed to value Wilmot at over £1million - announced last week the 18-year-old was close to leaving the club.
Arsenal and Tottenham are both understood to be competing for his signature, with the North London giants tracking the teenage centre-back in recent months.