Uefa have told Israel they cannot play the qualifiers in their own country because of security fears.
And, Vicarage Road could now become the country's temporary home after Israeli football association chairman Gavriel Levi travelled to London on Tuesday for a tour of the stadium.
"I don't see the situation in Israel improving over the next few months and we have to give Uefa an alternative venue to host our matches, " he said.
"Both the club and the local authority have agreed to let us use Vicarage Road."
Israel's first game at Watford could be against European champions France on 2nd April.