The England international is fresh from a stellar season that saw him bag 27 goals and provide 13 assists, helping Villa secure a coveted Champions League spot. He is said to be on the radar of several top clubs.
The Sun claimed Liverpool are readying a bid for Watkins this summer but Express Sport understands the Reds have no plans to try and sign the striker.
But Arsenal are on the hunt for a sharpshooter to bolster their attack and reignite their title ambitions after narrowly missing out to Manchester City in the season just finished.
Watkins, now 28, has not been shy about his aspirations. Back in 2020, while still at Brentford, he expressed his fondness for Arsenal at the London Football Awards.
"That's the dream to play for Arsenal one day. But it's a long shot," he revealed.
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"It's only because my family support them and stuff like that. But that's a long-term [goal]."
And a picture showed Watkins looking pensive when Villa secured their qualification for next year's Champions League while his Villa team-mates rejoiced.
The team from the Midlands bagged fourth spot after Manchester City's victory over Tottenham - which consequently was a massive blow for Arsenal and may explain Watkins' facial expression.
Aston Villa's squad celebrating Champions League qualification
The moment Aston Villa secured Champions League football for next season (Image: AVFCOfficial/X)
Liverpool have chosen not to enter the race for Leeds United's Championship Player of the Year, Crysencio Summerville. The Reds were said to be battling with Chelsea for the Dutchman's signature.
Paraag Marathe, chairman of the Whites, conceded that player departures may be on the cards at Elland Road after their failure to win the Championship play-off final, with Summerville likely to attract substantial interest.
"We have the funds we need to do what we need, but there will need to be some trade-offs," he admitted.
"It's not just outs, it's ins as well, looking at scouting possibilities, but we need to make trade-offs. I can't talk about specific players right now, it's too early."
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