The future of Tommy Smith could be resolved in the near future after Reading made a final take-it-or-leave-it £1.6m bid for the Watford frontman.

The Royals submitted a £1.2m offer on Thursday night and although Watford would not comment on the deal and insisted they were still considering the offer, it was nowhere near the club’s valuation of the 29-year-old.

The latest bid, which was submitted just before Smith starred in Watford’s 4-2 win over Nottingham Forest, is understood to be around £1.6m.

Sheffield United had a £1.8m bid accepted last month and initially Watford chairman Jimmy Russo claimed any new suitors would have to match the fee or beat it.

However, with only 12 days until the transfer window shuts, the Hornets may have to decide whether to take a reduced fee or risk losing Smith for less in January or on a free next summer when his contract runs out.

There could be a final twist in the Smith transfer saga as the forward’s boyhood club Newcastle United have made an enquiry and are understood to be considering making a bid following the sale of Damien Duff to Fulham yesterday.