The youngster is attracting plenty of interest ahead of the upcoming January transfer window.
Panzo, who is 20 years old, is on the radar of Udinese, who are connected to Watford by owner Giampaolo Pozzo.
It is a possibility that the Serie A side could try and sign him and then loan him to Vicarage Road, like they have done with many players throughout the past few years.
Panzo is a man in-demand though and is also wanted by Sporting Lisbon. He was also linked with a move to Championship trio Coventry City, Norwich City and Derby County last summer, as covered by The72.
He is from London and rose up through the youth ranks at Chelsea before moving to Monaco two years ago.
He was initially a regular for the French sides’ second team and made two appearances for their senior side. However, they decided to loan him out to Cercle Brugge last season.
Panzo did well in Belgium and caught the eye of many clubs across the continent. It was Dijon who won the race for his signature from Monaco and he has since become a regular for them in this campaign.
However, they are currently struggling at the bottom of Ligue 1 and he could seek an escape route this winter. He doesn’t seem to be short of possible destinations at the moment and is a name for Watford fans to keep an eye on, especially if Udinese swoop in.