The Hertfordshire Mercury says Scott looks set to join Watford's recruitment team.
Scott, who has most recently been chief scout at Griffin Park, is rumoured to be heading to Vicarage Road as technical director.
His arrival won't affect Filippo Giraldi's job as sporting director, rather Scott will fill the void left by Luke Dowling's departure.
Scott spent two years in charge of Brentford before returning last year as chief scout.
Meanwhile, Watford's management team face a decision over the future of Kingsley Fobi.
Fobi is on-loan this season with Spanish outfit Formentera and is attracting top-flight interest. The youngster was outstanding in the recent Copa del Rey draw against Athletic Bilbao