Watford manager Slavisa Jokanovic is yet to put pen to paper on a new contract.
Jokanovic is on a one-year rolling deal with the Premier League newcomers.
The Mail on Sunday says Newcastle United and Sunderland are monitoring developments at Watford as Jokanovic has yet to be offered a new contract.
Watford have already started drawing up plans for new players but have yet to discuss new terms for Jokanovic.