Watford striker Smith has been given permission to speak to Sheffield United
Watford chairman Jimmy Russo has criticised former boss Brendan Rodgers after he claimed striker Tommy Smith wanted to join him at Reading.
Watford have rejected what they called a "derisory" £750,000 offer from the Royals for Smith but accepted a £1.8m bid from Sheffield United.
"I am disturbed as to how Brendan knows Tommy's future intentions," Russo told the club's website.
"His comments are not very respectful to the fans and the staff at Watford."
Rodgers told the Reading Evening Post on Wednesday: "He [Smith] wants to be here. He's a player that has turned down a number of moves.
"My job is to identify the players that I want and then I, in exactly the same scenario as Steve Coppell, let [director of football] Nick Hammond and the board get on with it.
"I've made it clear we've made the intent that this was the offer.
"There were a number of other offers for Tommy and then one big one came in [from Sheffield United]."
And responding to the comments, Russo added: "He must not forget that Watford gave him his first managerial opportunity.
"Reading have failed to meet our valuation of the player in question, in fact last week I labelled the bid 'derisory'.
"I am more than happy to keep the player at the club if our valuation is not met. He is a fantastic player who will have a huge contribution on the pitch next season if he is still a Watford player.
"This also means that we do not have to purchase a replacement for him.
"Unless we receive the appropriate valuation for Tommy, through the correct channels, then we intend to keep the player at the club, this I can guarantee 100%."
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