Reports in the player's home country of Norway claim there are five Premier League clubs interested in the 25-year-old international.
Nettavisen claim Watford will be joined by Hull, West Ham, Bournemouth and Southampton in the race to sign Elabdellaoui, who would reportedly cost £5million.
Hull's connection to the player would appear to come through their new head coach Marco Silva, who knows the player well from their time together at the Greek champions.
Watford do not appear to be desperate for a new right wing-back with Daryl Janmaat and Nordin Amrabat both having impressed in the position this season.
But they could be tempted to move for the ex-Manchester City youngster because he would count as a valuable 'home-grown' player in their Premier League squad.
Centre-back Craig Cathcart was deployed at right-back against Burton Albion on Saturday because of injuries.