Watford have insisted that Troy Deeney is not for sale after turning down a bid of £25m from Leicester for their captain over the weekend.

Club officials held a meeting on Tuesday to discuss the interest from the Premier League champions having already rejected two bids from Claudio Ranieri’s side. Watford, who appointed the Italian Walter Mazzarri last month to replace Quique Sánchez Flores, are understood to be determined to hold on to the player they signed from Walsall for an initial fee of just £250,000 in 2010 despite reports that Leicester are preparing a new bid worth up to £30m.

That would place the 27-year-old among the most expensive British players in history, with only Raheem Sterling and Andy Carroll having cost more. Walsall are also due a percentage of any fee over £500,000 having inserted a sell-on clause in his contract.

Deeney scored 13 Premier League goals last season as Watford comfortably survived in their first season after promotion and is seen as the ideal foil for Jamie Vardy. The England striker has yet to make an announcement over whether he will join Arsenal, although Arsène Wenger hinted this week that Vardy will stay with Leicester.

Watford, whose owners the Pozzo family also have a controlling stake in Italian side Udinese having sold their interest in La Liga team Granada last week, are reported to be close to completing a deal for Nigerian forward Isaac Success from the latter while Manchester City midfielder Seko Fofana is set to move to the former for £3m.

The French midfielder, 21, has only one year of his contract at the Etihad Stadium remaining and is expected to spend an year in Italy with a view to joining Watford next season.