Watson, who has publically expressed he will test the open market before signing on for the 2022 season, has held recent meeting at the Knights about his future, according to The Australian journalist Brent Read, who revealed the news on Triple M.
“The Knights had a meeting with Connor Watson scheduled for last week and that meeting went ahead with Newcastle about his future,” Read said.
“He is off-contract at the end of this year and the Knights are confident they will keep him, but they are bracing for other clubs to come in for him.
It's understood the 25-year-old was disappointed with his original offer from the Knights, although that offer has since been revised.
Read reports that the Knights believe the Tigers will make a play for Watson in an attempt to replace the potentially departing Moses Mbye.
It has been reported heavily during the week that Mbye will depart at the end of the season for the St George Illawarra Dragons. It's also understood the Dragons wanted to make the deal happen before the August transfer deadline, but couldn't get it across the line.
“The club they think is going to make a move for Connor Watson is the Wests Tigers and the reason for that is Moses Mbye is currently at the Wests Tigers filling that utility role," Read said on Triple M.
“It is going to the be Tigers. The Knights are still confident they will keep Watson, but they are concerned.
“They are looking over their shoulders and they expect the Tigers to make a move sooner rather than later for Connor Watson."
Watson is approaching 100 first grade appearances, and has played every game so far this season for Adam O'Brien's side.
The utility has only started seven games however, with three appearances at five-eighth, and a further four at lock. He was a late demotion to the bench in last night's tight win over the Brisbane Broncos, but still played 51 minutes.