It is believed a Ukrainian businessman and a Thai consortium are interested in taking over the Hornets.
A statement on the club's official website read: "The board of Watford notes the recent press speculation in connection with a possible offer for the company and confirms that it has received a tentative approach and is in very preliminary discussions which may or may not lead to an offer being made for the company.
"There is no certainty that any offer will be forthcoming. A further announcement will be made in due course."