Nat Phillips has been heavily linked with a move away from Liverpool this month
Watford are viewed as top candidates to land the Liverpool centre-back with the Canaries currently struggling at the bottom of the Premier League.
According to The Telegraph , Watford boss Claudio Ranieri is close to being sacked after just three months he took over at Vicarage Road.
Watford have suffered 11 defeats in 13 games and the article claims players and staff are preparing for a new head coach to be appointed.
Should Ranieri be sacked , it means any potential move for Phillips could be hampered.
Asked about the club's interest in Phillips on Friday, the Watford boss told reporters: "Look, I like Phillips a lot, now, we are very, very full of defenders.
"[But] until the end of the market everything could happen and I have an open mind and am an open man. If someone arrives who can help us, I appreciate that."