Watford were relegated last week following a tumultuous campaign which saw them sack three different managers.
A summer rebuilding job is now inevitable as the Hornets offload their top earners.
Welbeck only moved to Vicarage Road 12 months ago from Arsenal.
But he's expected to pack his bags again as Watford bigwigs look to balance the books.
The injury-plagued 29-year-old struggled to find his feet this season and managed just two Premier League goals.