Currently managerless, the Hornets are interested in landing the Benin international for £5 million as they look to strengthen their attacking options to make sure they rise to the struggles of the top flight.
The striker scored 20 goals in the Championship last season and was a crucial part of the Blackburn squad that reached a quarter-final replay in the FA Cup.
The 26-year-old came close to a move away from Ewood Park in January and looks destined this summer to be making a move to the big time.
It will be the second time Gestede has been a Premier League player but only made three appearances for Cardiff City after winning promotion with them to the top flight in 2013, joining Blackburn just three months into the season.
His departure may ensure Jordan Rhodes is kept at the club this summer, with them unwilling to lose their front line. Speculation had been rife through the back end of the season that Rhodes would be departing this summer, as manager Gary Bowyer blasted his counterparts for announcing their interest in the striker.
Between them the pair scored 41 goals this season in the Championship meaning losing either player would be massive dent to the club's hopes of making a Premier League return in the near future.
Blackburn have already been dealt a blow this window, as another striking option Joshua King turned down a new deal in favour of a move to Premier League new boys Bournemouth.
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