When his beloved Hornets were relegated last season, Deeney stated he wanted to move to a Premier League club.
But the 32-year-old did not sign anywhere, despite interest from Tottenham and other top division teams.
"I saw Jose [Mourinho] at the Watford vs Spurs game pre-season. That's all I will say," Deeney told talkSPORT.
"I'm 32. A lot of clubs were looking for a different style of striker as a back up," he continued.
"Obviously everyone wants to play a certain way, but when you get into certain moments you need someone to hold it up or if you are losing a game go long.
"There were a lot of talks. Some things materialised, some things didn't. The ones that were getting closer you start thinking are you ready to go back to the Premier League to be a bit-part player.
"I've been at Watford ten years and then you start weighing the options of calling it a day. When you get into that mould of being a super sub you can't go back."