Watford are in discussions with neighbours Wycombe Wanderers over striking a deal which could see the club receive first refusal on any future Mike Williamsons with the Hornets’ young stars going in the opposite direction.

The two clubs, who are only around 25 miles apart, have been talking about creating stronger links in recent months.

The Hornets purchased Mike Williamson from Wycombe in January for £150,000 and both clubs benefited financially in the summer when the centre back was sold to Portsmouth for an initial £2m - with the Blues receiving 25 per cent through a sell-on clause.

Wycombe have relied heavily on the likes of Reading’s on loan midfielder Scott Davies this season and as part of an agreement, the Blues would also have the chance to take some of Watford’s young professionals on loan.

This season Hornets boss Malky Mackay has already expressed his desire for the likes of Jordan Parkes, who is currently on trial at Bournemouth, and Lewis Young to go out on loan to gain experience.

His opposite number Gary Waddock believes the Hornets’ financial problems may slow down developments on a deal between the two clubs but would welcome any such agreement.

Waddock said: “It’s probably been put on the back burner for a period now. I think with the situation they’ve got now, it’s not very high on their agenda.

“It will take its time and course and when it does happen it will be good.

“It’s just about having a relationship with another club and letting them know first hand what’s going on from this side and they will do the same with us – two local clubs communicating with each other.”