UPDATE 12:50PM - Blades Mad, who broke the story first last night at midnight, can now confirm that Sheffield United are the club who lodged a bid for the Hornet and we believe that the bid has been accepted for Smith's services. BBC Radio Sheffield are reporting that a bid two weeks ago was rejected by the Vicarage Road outfit. More to follow as the day progresses...
Reading and Wolves have both allegedly had an offer turned down by the Hornets but a third 'unnamed club' have placed a bid for the 29-year-old, and we suspect that Sheffield United are the 'unnamed club'.
An attempt to persuade Smith to depart Vicarage Road has been made by a few clubs, with the previous two being rejected, and Watford chairman Jimmy Russo confirmed that a third offer from a different 'Championship club' (£1.8m) has been tabled, whom Sky Sports understand is not Brendan Rodgers' Reading. Rodgers of course departed the mid-table side a few weeks ago to take the helm at the Madejski.
Russo said: "We've received a new bid today (Thursday) for Tommy and we will allow him to speak to the club in question. This is a new club that has expressed a desire to sign Tommy."
Sheffield United's connections with Watford aren't seeming to halt with the arrival of Lee Williamson two weeks ago, and then Smith who is described as someone with great prodigy could be subject of a move to S2.