Speaking after Saturday's 35-point loss to St Kilda at the MCG, Watts, who comes out of contract at the end of the season, said he was hopeful that discussions between his manager, Paul Connors, and the club would soon heat up.
"Paul has actually gone away on a well deserved holiday at the moment and he'll be back in a couple of weeks, but I'm pretty keen to get into it after that," he said.
The no.1 selection at the 2008 draft has battled to live up to the hype and has become one of the most magnified players in the AFL.
The key forward has been linked to a move away from the Demons at the end of the season, but he appeared to scotch that talk on Saturday.
"Yeah I do want to stay. Definitely. It's a great group of blokes that I have spent the last five years with and obviously it's been tough. We're non-competitive and it has been frustrating.
"But I want to be there when things turn around and hopefully that's sooner rather than later," the 22-year-old said.
Interim Demons coach Neil Craig said the club had to play its part in retaining players like Watts, who he rated among the team's best against the Saints.
"It's up to the Melbourne Football Club to create an environment for players like Jack who are out of contract to want to stay. That's part of our responsibility. They're highly motivated young men and its not our place to demotivate them.
"The club has to get its act together so that when people come to the Melbourne Football Club, be it a player or an employee, they have an absolute belief they can be the best they can possibly be.
"It has to become a no-brainer," he said.