"Nothing has changed. A bid has come in and is being considered at the moment," said Hornets manager Malky Mackay.
Meanwhile, Mackay is on the trail of a striker and has put in an offer for Blackburn frontman Paul Gallagher.
"We have made a bid for Paul Gallagher and at the moment we are talking to Blackburn," he added. "That is certainly something we would like to happen."
Mackay could be prepared to use Nathan Ellington in any deal for the 24-year-old Scot.