If the Texans can't reach a new deal before Watt's rookie contract expires, owner Bob McNair wouldn't mind using the franchise tag on him.
"You've got guys in the Hall of Fame that have been franchised in back-to-back years," McNair told ESPN.com. "The franchise tag is worth something to the team, and you can't be afraid to use it."
Earlier this summer, the Texans picked up the optional fifth season on his contract. The sides had some preliminary discussions before the team took that action.
"It's going to be a big contract," McNair said. "If we can do something with him that makes sense for the team to do it early, we'll certainly do it.
"It has to make sense for us. The team comes first. We want to keep all of our players. We want to take care of all or our players, but the team comes first."
McNair said the Texans prioritize certain players they consider "core players" who need to be protected and that Watt is one of them.
"We want him here for a long time," McNair said. "We protected Andre Johnson, given him long-term contracts. Brian Cushing's got a long-term contract. Arian Foster. So certain key players, core players, we've tried not to tie them up for a long period of time. Mario [Williams] is gone; we just couldn't do that.