The defender has been struggling with an ankle issue, but has been back in training this week.
“Kieran has been training the last two days, he is feeling much better so hopefully he will be available,” said Arteta.
“Let’s see in the next two training sessions how he’s feeling, he has done bits with the team but he’s not fully trained yet, so in the next two days we will see how he is and where his fitness is.”
Other than that, Arsenal only have Granit Xhaka and Thomas Partey out as injury absences ahead of the match with Watford as they are still out with a knee problem and tight groin respectively.
Arteta is likely to name the same side who beat Leicester City last weekend.
Arsenal starting XI (4-2-3-1): Ramsdale, Tomiyasu, White, Gabriel, Tavares, Saka, Sambi Lokonga, Maitland-Niles, Smith-Rowe, Lacazette, AubameyangSubs: Leno, Tierney, Odegaard, Holding, Cedric, Pepe, Elneny, Nketiah, Martinelli
Sunday 2.00pm GMT, Sky Sports
Venue: Emirates Stadium
Referee: Kevin Friend
Arsenal squad from: Leno, Ramsdale, Okonkwo; Cedric, Chambers, Gabriel, Holding, Kolasinac, Mari, Tavares, Tierney, Tomiyasu, White; Elneny, Lokonga, Maitland-Niles, Odegaard, Partey, Saka, Smith Rowe; Aubameyang, Balogun, Lacazette, Martinelli, Nketiah and Pepe.
Doubts: Tierney (ankle)