The Warriors would likely receive a 2011 second-round pick. The person spoke Tuesday on the condition of anonymity because the deal was not official.
Watson can play both guard spots, though his primary role with the Bulls would likely be to back up All-Star Derrick Rose at the point. He has averaged 8.7 points in 23 minutes per game over three seasons.
The move would be the latest in a busy offseason for the Bulls, who have also acquired two-time All-Star forward Carlos Boozer, sharpshooter Kyle Korver and shooting guard Ronnie Brewer — who all played together in Utah.