The 'Hornets' reportedly had a £500,000 bid for the 18-year-old rejected by Stevenage back in January, and have turned their attentions to other potential signings.
Meanwhile, a source for Stevenage has allegedly told 'Sky Sports News' that the club consider Wilmot worth double that figure at over £1million.
All hope is not lost for the young defender as Premier League club Brighton have expressed their tentative interest, alongside various other Championship clubs.
For the time being, Watford are 12th in the Premier League with a fixture against 16th in the league, Huddersfield on Saturday.