30-year-old, Birmingham-born Deeney is no stranger to transfer speculation - having been linked with a variety of clubs over recent years - and is understood to be keen to remain with Watford and fight for his place in Javi Gracia's starting line-up, a decision which could be taken out of his hands should a deal be struck between the two sides.
Walsall, who signed Deeney back in 2006 before accepting a £500,000 deal in the summer of 2010, are believed to have an active sell-on clause of around 20%, which, if a deal is eventually agreed, could see them collect some much needed funds to both help bolster their squad and ease financial pressures from other sources.
Saddlers supporters won't be getting their hopes up however as Deeney has been linked with moves to several clubs over recent seasons, including former Premier League champions Leicester City, and West Bromwich Albion, and is said to be unsure of accepting a move away from the Hornets following several high-scoring campaigns.
Nixon reports that City boss Warnock is keen to secure a deal within the next day or so as the manager looks to leapfrog many of Deeney's other suitors as he seeks to avoid a season towards the foot of the Premier League table, following their recent return to the top flight,