The midfielder turned down interest from Torino and West Ham last month.
"I read the links and I said I want to stay in Watford.
"I want to stay here. I have two more years and I feel good at the club."
Meanwhile, Watford management are excited by 16 year-old striker Ryan Cassidy.
The Irish kid has netted four goals in his first two U23 games, including a hat-trick on his debut at Bristol City.
"But he's still got a long way to go in terms of his development, where he is going, where he wants to go and where we'd like him to go as a player.
"We need to manage him and make sure he does all the things right every day. You can't get carried away with what he's done, but on the flip side enjoy it."