The Daily Mail says as they seek a new centre-forward addition, United have whittled their shortlist down to two names.
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RB Leipzig striker Benjamin Seski and Watkins are the two players now being considered.
And in Watkins' case, United are convinced Villa are willing to sell the England international for £45m this summer.
The climbdown would come just months after Arsenal were quoted £80m for Watkins in January.
For his part, Watkins has let it be known he'd be open to a move to Old Trafford should the two clubs reach terms.
