Watford have stopped short of meeting the salary demands of a defender, also linked with Leeds United, who they have been looking at signing.
The Hornets continue to be active heading into the final stretch of the transfer window as they seek to back Tom Cleverley.
Watford have made a bright start to the campaign with two wins from their opening two Championship games, while they also won their EFL Cup tie against MK Dons.
They have been showing interest in AC Milan left-back Fode Ballo-Toure, who spent last season on loan at Fulham.
AC Milan have made clear to the defender he is not part of their plans and they want to move him out, while Ballo-Toure favours a return to England.
He has already turned down Turkish side Besiktas, while he has now been unable to agree personal terms with Saint-Etienne.
Watford are interested but, according to Italian outlet Calciomercato.com, they have been put off by his wage demands of €1.2m per year.
There are no offers on the table, apart from the collapsed Saint-Etienne move, despite Leeds also having been linked with Ballo-Toure.
The Whites have money to spend following a number of big sales this summer, but they are yet to make a firm play for the defender.
AC Milan are increasingly desperate to move Ballo-Toure on, though it is unclear if the defender is prepared to compromise on his wages.
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