According to the report, the 23-cap England international and World Cup participant has been offered a three-year contract worth €10m per season.
Watkins remains under contract at Villa Park until 2028, meaning any move would require a substantial transfer fee to prise him away from his current deal. The report indicates Villa would only be willing to enter negotiations if an opening bid of at least €40m were tabled, reflecting the club's reluctance to lose one of their most important attacking players cheaply.
The 1.80m forward has made 278 competitive appearances for Aston Villa, scoring 108 goals and providing 47 assists, numbers that underline the consistent goal threat he has provided since joining the club from Brentford. His importance to Unai Emery's side, both domestically and in Europe, means any departure would represent a major squad decision for Villa regardless of the fee involved.
Fenerbahce's interest comes as the Turkish club looks to strengthen their forward line in pursuit of closing the gap on domestic rivals Galatasaray, with a marquee centre-forward seen as central to those ambitions.
Whether Villa would ultimately sanction a sale at the valuation being discussed remains to be seen, but the scale of the proposed contract underlines just how seriously Fenerbahce are considering a move for one of the Premier League's most reliable goalscorers.
The interest also comes at an intriguing moment for Watkins, who continues to be linked with a step up to one of England's traditionally bigger clubs, having previously been mentioned in connection with both Arsenal and Manchester United over the years.
A move to Turkey would represent a significant departure from that expected trajectory, offering a considerably higher salary but taking him away from the Premier League and Champions League football he has enjoyed with Villa in recent seasons.
For now, the situation remains at the stage of an offer rather than a concrete negotiation, with Villa's valuation likely to prove the key obstacle to any deal progressing further.