However, the two teams have a price difference. United believe Watkins is worth between £40-45 million, while Villa want £60 million for him.
Villa recently quoted Arsenal a higher price of £80 million for Watkins just six months ago.
A possible swap deal involving Alejandro Garnacho has been discussed. Garnacho, an Argentina international, might be part of the deal, but he and his team are unsure if they want to leave Manchester United.
Garnacho's camp thinks he should join a Champions League team if he leaves United this summer.