Watford have told clubs interested in signing Gerard Deulofeu this month that he is not for sale, Sky Sports reports.
AC Milan are one of the clubs interested in signing the winger, according to Sky in Italy, but Watford are unwilling to sanction his departure.
The 24-year-old spent the first half of 2017 on loan at Milan from Everton, and the Rossoneri are believed to be keen on bringing him back for a second spell at the San Siro.
The former Barcelona player has scored three goals in 16 Premier League games for Watford this season.
While Deulofeu looks set to remain at Vicarage Road, Maxwel Cornet’s move to the Hornets has broken down, according to Sky Sports.
Watford were understood to have been in talks with Lyon over the 22-year-old forward, but he has decided to remain at the club.