Despite the bid, Villa won the game 4-2, securing a spot in the last-16 of the competition.
Agbonlahor expressed his frustration on talkSPORT, unhappy with the timing of Arsenal's offer.
"The audacity of Arsenal on the eve of the game - a massive game tonight for Villa against Celtic - to put in a bid of £60million for Ollie Watkins to go sideways to Arsenal," the former Villa striker stated.
"The audacity of this football club. I'm in shock here. Villa fans are going to the game in good spirits and now both of our star strikers have had bids in for them. How unsettling is that for both of the players tonight?"
He then added on Watkins being a Gunner as a child. "Yeah, he came out in 2019 (2020) didn't he to say he'd like to play for Arsenal one day.
"Listen, it's really unsettling but knowing the situation, there is zero chance of them selling Watkins. Duran will be the one they sell because he's got that side to him where he can be a bit of a handful.
"The manager won't accept that. If they can get £75M for him, they will definitely sell Duran. I just don't like the timing from Arsenal. Who do they think they are?"