However, the Hornets are not prepared to meet Arsenal's 15m evaluation, especially when Gibbs is the final year of his contract.
The other road block for Silva is Gibbs' wages.
The 27-year old currently earns £60,000-per-week with the Gunners, an amount that is deemed excessive by Watford.
Gibbs looks on the outer at the Emirates after Sead Kolasinac was signed from Schalke earlier this month.
With a World Cup next year, Gibbs may have to force his way out of Arsenal, and drop his wages, to ensure he gives himself a chance of making it to Russia.
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