And the Demons have confirmed they are speaking with former Western Bulldog Daniel Cross about extending his career into a 13th season.
New coach Paul Roos has the Demons buzzing and football operations manager Josh Mahoney says talks with Watts and his management were progressing.
"We’ve been speaking to Paul Connors, his management, it’s getting closer and closer by the day," Mahoney said.
"Hopefully I can meet with Paul shortly and we’re not too far away from doing a deal."
Mahoney said Roos' appointment had delivered a fresh outlook for the players.
"The first time he walked down the hallway you could just see they looked at him in awe and sat up with a straight back and listened to every word he said," Mahoney said.
"They're excited and they've got a period off but it's amazing, when you've got a signing like Paul Roos or something exciting happening, just how many players end up hanging around a bit longer than they have to."
Cross has indicated he is keen to extend his 210-game career after being discarded by the Bulldogs, and Melbourne is set to meet again with the midfielder in the next week.
The 30-year-old, who could cross to the Demons as a delisted free agent, could also transition into a sports science role with the club.
"We've had a chat to see what his interests are," Melbourne general manager of player and personnel Todd Viney told Fairfax Media.
"I think his main interest is he wants to play."
Mahoney said the buzz around Roos’ appointment had also extended beyond the playing group.
The club's hunt for a coaching panel to fulfill the football department has started, Roos' colleague at the Sydney Swans, Brett Allison, switching from North Melbourne. Two assistant coaches and a senior assistant are required to offset the loss of Brian Royal and Leigh Brown who departed earlier this week.
"We’re getting a lot more incoming calls from who people want to join the club than people who want to leave," Mahoney said.
"It’s been a busy time since Paul’s come down from Melbourne. We’ve been locked in rooms with Todd Viney and the recruiting staff."
Seven days has passed since new president Glen Bartlett and CEO Peter Jackson landed the Sydney Swans premiership coach.
And with free agency and trade period looming, the Demons are moving to secure the playing list and add to the football department.
Mahoney hinted the Demons would be chasing coaches still involved in finals action. Names linked to the club include Hawthorn’s Adam Simpson and the Swans' Leigh Tudor.
"We’ve got three development coaches who are still involved in the possibility of staying on board," he said.
"Jade Rawlings is contracted and will stay on board.
"We’re wary of coaches involved in finals series at the moment.
"We’re working with them, making sure it doesn’t affect their preparations for the games. We’d hope that after the grand final we’d be very close to an announcement."
