Watford are favourites to sign Liverpool youngster Jerome Sinclair, according to the Daily Mirror.

The report claims that the Reds are willing to listen to offers for the 19-year-old, who is in the last year of his contract at Anfield.

The Reds have failed to convince the young striker to sign a new deal and he will be eligible to leave the club for free in the summer.

However, the Merseysiders will allow him to leave for a fee of around £3million in January and the Hornets are currently leading the pursuit for his services.