A product of the Sunderland academy, Watson has featured once in the Championship for the Black Cats and is rated highly on Wearside.
Nottingham Forest attempted to sign him just before the last summer transfer window shut.
Since then, Watson has signed a new contract with Sunderland but Forest are still interested in getting their hands on him.
The England Under-17 international is very much on Nottingham Forest’s radar and the club are keen to take him to the Midlands.
They are expected to try and sign the winger again when the transfer window opens again in January.
Forest were looking at needing to pay somewhere around £300,000 for the teenage winger in the summer window.
Sunderland are likely to demand more money if they want him in January as he has signed a new contract with the club.