News Group confirmed this morning that it was parting company this week with Furneaux-Harris, who has only been in the job for seven months.
Watson, a former News Group marketing director, is understood to have held talks with the publishing giant about a senior post that could have included marketing as part of a wider role. However, Watson denied any move was afoot.
"Naturally I'd be anyone's first choice, but sadly for News Group the rumours are utter rubbish," Watson said.
The speculation came as it emerged that Furneaux-Harris will leave News Group following a dispute over marketing strategy.
She is understood to have been relieved of marketing responsibilities and is set to leave the company, part of Rupert Murdoch's News International in the UK, within weeks.
A priority for whoever now takes over will be to turn around the fortunes of The Sun, which has seen sales drop by around 126,000 since Furneaux-Harris joined. With the latest ABCs due this Friday a further slump is expected.
A spokeswoman for The Sun and News of the World confirmed that Furneaux-Harris is leaving but would make no further comment. News Group general manager Richard Webb has reportedly taken over her responsibilities as an interim measure.
Watson left News Group in 1999 after five years to launch the now-defunct internet venture Talkcast. He later moved to 'Who Wants to Be a Millionaire?' firm Celador International, where he was managing director, before joining Mirror Group Newspapers last June as general manager.
During his time at News International, Watson, who launched The Sun's ISP Currantbun.com, became known as the Kelvin MacKenzie of newspaper marketing, due to his colourful use of language.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .
_1.jpg)
.jpg)
