The Chronicle understands the 25-year-old remains at the top of Brian McDermott's wish list, but the Hornets have already rejected a £2 million bid.
That, though, has not put Reading off and they are now ready to offer more for the Jamaica international who previously worked under Royals coach Chris Cummins during his spell at Vicarage Road.
But Royals' chances of landing Nottingham Forest's Chris Gunter appear to have been dashed after a failed £2 million swoop last week.
Another of McDermott's targets looks to have slipped through his fingers after Burnley youngster Jay Rodriguez sealed a £7 million switch to fellow promotion-winners Southampton at the weekend.
But Royals' boss is still pursuing a number of other signings amid reports of interest in Copenhagen striker Dame N'Doye.
Reading scouts have watched the 27-year-old Senegal international in action, but Alan Pardew's Newcastle United are also believed to be interested.
N'Doye fired 59 goals in 104 games for Copenhagen and is valued at around £7 million.
Another potential target for Reading could be Russian striker Pavel Pogrebnyak, currently on duty at Euro 2012.
The 28-year-old spent the end of last season on loan with Fulham, but the Cottagers are yet to agree a permanent deal meaning he is free to speak to other clubs.
Newcastle United's out-of-contract Danny Guthrie plus Huddersfield Town's £7 million-rated hitman Jordan Rhodes are also attracting strong interest from Reading.
Royals could now use centre-back Sean Morrison as a makeweight in the deal as the Terriers are eager to sign him permanently.
Morrison, 21, played 22 times for Huddersfield on loan last season and helped them clinch promotion to the Championship.