The 24-year-old made an immediate impression during his first season at Vicarage Road with 10 goals and six assists in 33 Premier League outings for the Hornets.
However, Dennis's efforts could not save Watford from the drop, and as things stand, the Nigeria international will be playing Championship football for the 2022-23 season.
Dennis has unsurprisingly been linked with a move back to the top flight in the coming weeks, and Everton have been tipped to complete a deal for the striker.
The Toffees have sold Richarlison to Tottenham Hotspur for a £60m fee, and there have been suggestions that Dennis could arrive at Goodison Park as the Brazilian's replacement.
Now, Football Insider claims that Frank Lampard's side are not actively seeking to sign the former Club Brugge man, but he is still not short of Premier League offers.
Newcastle United and West Ham United are both said to be keeping tabs on any future developments, with Watford conceding that Dennis will leave this summer.
Rob Edwards's side are currently in Austria for a pre-season training camp, but Dennis and fellow attacker Ismaila Sarr are not present as they aim to force exits.
The striker remains under contract at Vicarage Road until the summer of 2026, though, so it could take a fee of £20m to end Dennis's stint with the Hornets.
While Dennis may not be on the Toffees' radar, Everton are expected to prioritise the signing of a new frontman after sanctioning Richarlison's big-money move to North London.
Dominic Calvert-Lewin is expected to remain at Goodison Park, with the England international strongly linked with a move to Arsenal before the Gunners struck a move for Gabriel Jesus.
Chelsea starlet Armando Broja is understood to be another name on Lampard's shortlist after the 20-year-old hit six Premier League goals during a loan spell with Southampton last year.
The Blues have allowed Romelu Lukaku to leave for Inter Milan on loan and will aim to bolster their attacking ranks, but it is unclear if he has a place in Thomas Tuchel's ranks.
West Ham could also rival Everton for the Albania international's signature, though, as David Moyes hopes to add backup and competition for lone striker Michail Antonio.