Arsene Wenger and Arsenal have big hopes that Watt can make the breakthrough at the Emirates Stadium, but they are keen for their best young talent to gain first-team experience elsewhere.
Watt spent time out on loan last season firstly with Southend and then with Leeds, who are now favourites to seal his signature again.
Watt will sign on loan with Leeds, with the deal likely to run to January with a view to extending it if all parties are happy.
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