Wolves and Crystal Palace are also interested, but Liverpool appear to have moved first.
Sarr only arrived at Vicarage Road last summer, costing Ligue 1 club Rennes (BBC) £ 25million.
He had a decent first campaign in the Premier League; notching six times and registering as many assists in 30 appearances.
Sarr performed brilliantly in a 3-0 win over Liverpool in 2019/20 and may have caught the attention of Jurgen Klopp.
The 22-year-old scored twice and set up the other as the Reds were surprisingly swept away.
On the back of the latest reports, supporters spoke of the Senegalese international on Twitter.
Many believe he will be a pretty astute signing and are hopeful that a deal can be reached to see him head to Anfield.
Sarr is earning £ 25,000 a week at Vicarage Road and the relegation of Watford will only increase his chances of leaving.
Liverpool won’t be looking for regular starters and Klopp would welcome Sarr’s quality in reserve.
Sadio Mane, Roberto Firmino and Mohamed Salah aren’t going anywhere soon but Sarr would be an improvement over Xherdan Shaqiri or Divock Origi from the bench.
Following the latest reports, we took a look at what Liverpool fans were saying on Twitter.
He will be a good player for us
– finn M (@ finnM04884239) August 4, 2020
This guy was excellent when Watford beat us this season. Sadio is an international teammate so he won’t have a problem settling down. It could be a good signing for us if it’s true. (I take all the transfer speculation with a pinch of salt)
– tracy (@ tracy51774335) August 4, 2020
I hope it’s true.
– Rizze (@ Rizal27hamsik) 4 years ago 2020
It would be a good signing
– Nickcooper_Liverpool_YNWA (@nickcooperlfc) August 4, 2020
Hope this one is true.
– John (@ John55801250) August 4, 2020
I would like it but does not solve the CAN problem.
– PG47 (@janglisherr) August 4, 2020
Decent player, I wouldn’t be surprised if Liverpool look good. I have done this in the past with Wijnaldum, Robertson, etc.
– ChuChu ™ (@ Chubalus16) August 4, 2020
I would love to see that. This kid could be amazing in one to two years under Klopp and be world class.
– Paul (@ PaulDav60714664) August 4, 2020
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