Wednesday 12 November 2008 16:36, UK
The 28-year-old, who has been with the Merseyside club for 10 years, has seen his time with Rovers brought to an end.
Rovers boss Watson also confirmed that youngsters Andy Ralph and Thomas Dreves would be allowed to leave.
"We won't be keeping young Andy Ralph, Alan Morgan won't be getting his contract renewed along with Thomas Dreves and then the rest who are on decent money, if they're willing to sit down and reduce wages then there might be a possibility," said Watson.
"Ideally you want a squad of 20 first team players who can come in and do a job, it think when you look at the squad of 30 from last year then that included all the kids and they weren't really ready for the first team.
"I think if you've got 20 players who can come in and do a job in the first team then that's not bad.
"The ITV digital deal could drag on for a while but we also have players out of contract who might end up going to a tribunal, for example Clint Hill, Sean Thornton and Joe Murphy and that could drag on too, so it really is a case of wait and see."
Meanwhile, Tranmere have offered contracts to youngsters Ryan Taylor, Paul Linwood, Jamie McGuire, Karl Dunbar and Paul Robinson.
