New Bluebirds boss Erol Bulut is making moves in the transfer market, with the club having just slapped in a proposal to take West Brom striker Karlan Grant on loan.
Yakou Meite and Ike Ugbo have also arrived to add to Bulut’s attacking options.
Watters, 24, could be looking at limited game time if he stays put in Wales and he is drawing interest from League One.
The striker, who joined Cardiff in 2021 from Crawley Town, spent the second half of last season on loan at Barnsley.
He has been linked with a potential return to Oakwell this summer.
Watters scored four goals in 21 League One outings for Barnsley, as well as providing two assists for his team-mates
He was handed 15 minutes in the club’s League One playoff final defeat at the hands of Sheffield Wednesday.
And his displays at League One level have not gone unnoticed.
