The 29-year-old striker's deal with Watford included a £5.5m release clause and was set to expire next summer, but the former England man can now sign for a new club as a free agent.
Scroll down and click through to see who are the main contenders for his signature, according to bookmakers SkyBet.
1. Southampton
The Saints are among the leading contenders and are 6/1 to land the ex-Manchester United man
2. West Ham
The Hammers are keen to boost their attacking options and are also priced at 6/1
3. West Brom
The Baggies are 7/1 to bag their man as they bid to retain their Premier League status
4. Newcastle
The Toon could also be an option for Welbeck and Steve Bruce's men are at 8/1
1 / 3