The 33-year-old was said to be heading to boyhood club Birmingham City after over a decade in Hertfordshire as Watford agreed to let him rip up the final year of his deal.
However, according to the Glasgow Times, Celtic have entered the race to sign the forward, who has bagged 47 goals in the English top flight during his time with the Hornets.
To further muddy the waters, a video appeared online supposedly from the Instagram account of Deeney’s agent which suggested the forward was approaching Ibrox.
However, the Scottish Sun reports the video is a hoax and neither the player nor his agent are in Glasgow today.
Celtic are expected to complete the signings of Benfica winger Filipe Jota and Greek striker Georgios Giakoumakis before the end of tomorrow’s transfer deadline day.