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.
5. Aston Villa
The Villians may have put seven past the champs but they are also said to be interested at 10/1
6. Fulham
Fulham face a huge battle to remain in the Premier League and Welbeck's experience could well prove useful. Parker's men are at 10/1
7. Burnley
Burnley have been quiet this window and gaining Welbeck on a free could be of interest to Dyche.They are 12/1
8. Leeds
The ex-United man is 14/1 to arrive at Elland Road