Crystal Palace are monitoring Will Hughes' situation at Watford amid a contract stand-off between the midfielder and newly-promoted Premier League club.
Hughes has turned down the latest offer from the Hornets and been demoted to the Under-23s side ahead of the new season with just one year remaining on his current deal.
The Athletic state that Hughes has been offered a five-year extension at Vicarage Road including a significant pay increase following the club's promotion at the end of last season, but a stalemate has been reached on terms.
Amid the ongoing impasse in negotiations, football.london understand that Crystal Palace are keeping a keen eye on the situation as Dougie Freedman and Patrick Vieira oversee a squad rebuild at Selhurst Park.
Palace have already signed four new players this summer with a host of players leaving the club at the expiration of their contracts this summer.
Back-up goalkeeper Remi Matthews, defenders Marc Guehi and Joachim Andersen and midfielder Michael Olise have all joined on permanent deal, while Palace confirmed a one-year loan deal with Conor Gallagher of Chelsea on Friday afternoon.
With so many players leaving the squad this summer, it is clear that Palace need to add strength in depth and are keeping tabs on Hughes as they eye potential bargains in the market.
Hughes is looking likely to leave the club the longer his current situation drags on, with the club understandably not happy to lose him on a free transfer next summer.
Aston Villa and Newcastle have also been linked with a move for the 26-year-old, with Hughes now believed to be considering options away from Watford.
