The 26-year-old helped his side to promotion into the Premier League last season with 21 goals in 43 Championship games.
According to the Liverpool Echo, Toffees manager Roberto Martinez is lining up a £20m deal for the Hornets skipper.
Deeney, who started his career with Walsall, has broken the 20-goal barrier for the last three seasons with Watford.
Restore Data
| Team | P | W | D | L | F | A | GD | PTS | |
| 1 | Arsenal | 35 | 25 | 5 | 5 | 85 | 28 | 57 | 80 |
| 2 | Manchester CityMan City | 34 | 24 | 7 | 3 | 82 | 32 | 50 | 79 |
| 3 | Liverpool | 35 | 22 | 9 | 4 | 77 | 36 | 41 | 75 |
| 4 | Aston Villa | 35 | 20 | 7 | 8 | 73 | 52 | 21 | 67 |
| 5 | Tottenham HotspurSpurs | 33 | 18 | 6 | 9 | 67 | 52 | 15 | 60 |
| 6 | Manchester UnitedMan Utd | 34 | 16 | 6 | 12 | 52 | 51 | 1 | 54 |
| 7 | Newcastle UnitedNewcastle | 34 | 16 | 5 | 13 | 74 | 55 | 19 | 53 |
| 8 | West Ham UnitedWest Ham | 35 | 13 | 10 | 12 | 56 | 65 | -9 | 49 |
| 9 | Chelsea | 33 | 13 | 9 | 11 | 63 | 59 | 4 | 48 |
| 10 | Bournemouth | 35 | 13 | 9 | 13 | 52 | 60 | -8 | 48 |
| 11 | Wolverhampton WanderersWolves | 35 | 13 | 7 | 15 | 48 | 55 | -7 | 46 |
| 12 | Brighton & Hove AlbionBrighton | 34 | 11 | 11 | 12 | 52 | 57 | -5 | 44 |
| 13 | Fulham | 35 | 12 | 7 | 16 | 51 | 55 | -4 | 43 |
| 14 | Crystal Palace | 35 | 10 | 10 | 15 | 45 | 57 | -12 | 40 |
| 15 | Everton | 35 | 12 | 8 | 15 | 37 | 48 | -11 | 36 |
| 16 | Brentford | 35 | 9 | 8 | 18 | 52 | 60 | -8 | 35 |
| 17 | Nottingham ForestNott'm Forest | 35 | 7 | 9 | 19 | 42 | 62 | -20 | 26 |
| 18 | Luton TownLuton | 35 | 6 | 7 | 22 | 48 | 77 | -29 | 25 |
| 19 | Burnley | 35 | 5 | 9 | 21 | 38 | 70 | -32 | 24 |
| R | Sheffield UnitedSheff Utd | 35 | 3 | 7 | 25 | 34 | 97 | -63 | 16 |
| > Premier League Full Table | |||||||||
