The 17-year-old is considered one of the hottest prospects in French football and he has already made his debut for Toulouse.
That happened last season when Lafont was just 16 years and 310 days old - making him the youngest ever goalkeeper to play in Ligue 1.
Arsenal have since been tracking the youngster and scouts have returned home with glowing reports.
But, according to L'Equipe, Watford are hoping to sneak in and snatch Lafont from under Arsenal's noses.
Like their Premier League rivals, the Hornets have been scouting the Frenchman and want him to move to Vicarage Road in January.