The prospective transfer was apparently worth 9.65 million pounds in total, with eight million payable up front.
However, Young is said to have refused the move. The reasons for this are at present unknown.
Highly-rated striker Young has been linked with a move throughout the transfer window after impressing in the Premiership following Watford's promotion, despite the club's poor first half of the season.
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West Ham are also in the relegation zone in a spectacular fall from grace since appearing in the FA Cup final last season.
Manager Alan Pardew was sacked amid the upheaval of a takeover, as the team missed the goal-scoring feats of injured striker Dean Ashton.
Ashton broke his ankle while preparing to make his England debut in August and will return to action in February, current boss Alan Curbishley has said.
Tottenham Hotspur and other unknown clubs have previously tabled bids for Young below the value of the new offer.
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