Rashford, 27, has been on loan at Villa since January and has shown a resurgence in form, scoring three goals and providing five assists in his 15 games across all competitions.
Despite his improved performance, Rashford is still expected to leave Manchester United permanently in the summer. The club is exploring alternative options to sell him, as they struggle to find a suitable replacement for their struggling frontmen, Joshua Zirkzee and Rasmus Hojlund.
Aston Villa, led by manager Ruben Amorim, may be interested in signing Watkins, 29, who has impressed with 16 goals and 13 assists in 48 games this season. Interestingly, Villa manager Unai Emery recently opted to start Rashford over Watkins in their Champions League quarter-final against PSG.