Cardiff have added to their attack over the course of the transfer window so far and departures are now expected.
Watters is a player who has been tipped for a possible exit and his chances of regular game time if he stays at the Welsh club look bleak.
Watters spent the second half of last season on loan at Barnsley in League One and made an impression.
The Oakwell outfit now want the 24-year-old striker back and it is claimed they are leading the chase for his signature.
There are other League One sides who have been showing interest in Watters, but Barnsley look to be in pole position.
Cardiff signed Watters from Crawley Town in the January 2021 transfer window and forked out in the region of £1m for him.
Watters has struggled for game time at Cardiff and will hope that a move away this summer can hand him regular minutes next term.
