The former Brentford man has only just penned a new contract at Villa Park amid the growing interest in his services, committing his future to Unai Emery's side until the summer of 2028.
Watkins's renewal came on the back of an excellent start to the season for the 27-year-old, who has seven goals and four assists under his belt from 13 matches so far this season.
Watkins already has two hat-tricks to his name in the new term, netting trebles against Hibernian in the Europa Conference League qualifiers and in a 6-1 pummelling of Brighton & Hove Albion in the Premier League.
The striker is the first Villa player since Andy Gray in the 1976-77 season to score multiple hat tricks in a single campaign for the Lions, while he also scored the winning goal for England in a 1-0 friendly victory over Australia last week.
Despite signing on the dotted line earlier this month, Watkins's loyalty to Villa could be tested in 2024, as both Arsenal and Chelsea are thought to have taken a liking to him.
The London duo may face stiff competition for his signature, though, as according to Rai - via Sempremilan - Milan have also been alerted to Watkins's exploits in the Premier League.
Michele Fratini - who works as an intermediary and scout in Italy - told the publication that the Rossoneri are keeping a close eye on the Englishman's performances as they weigh up their attacking options.
Following the retirement of Zlatan Ibrahimovic, Stefano Pioli's side added to their attacking ranks in the summer with the captures of Noah Okafor and Luka Jovic from Red Bull Salzburg and Fiorentina respectively.
However, 37-year-old Olivier Giroud has started the 2023-24 season as Pioli's first-choice centre-forward, and he has continued to shine in Serie A with four goals and three assists from his opening seven top-flight games of the new term.
Giroud's contract was extended by a further year in April, but the former Arsenal and Chelsea man is due to become a free agent at the end of the current campaign, and it is unclear whether he will be handed another extension.
The veteran marksman was quizzed on his contract situation while attending a Snai event earlier this month, and while he stated that he is "happy" at San Siro, he is giving no thought to his future beyond the end of the new term.
"I'm not thinking about it at the moment, I'm focused on this year to do well for Milan. I'm always happy to be here, I've been since day one," Football Italia quotes Giroud as saying.
In addition, Jovic only signed a one-year deal with Milan upon his arrival in the summer, and the former Real Madrid man is yet to get off the mark for the Rossoneri, playing just 128 minutes of Serie A football this season.
Milan return to Serie A action with a blockbuster clash against Juventus on Sunday evening, where Pioli's side will look to maintain or increase their two-point lead over Inter Milan at the top of the table.