The striker had to come off during a Europa Conference League win over Ajax in midweek.
As the Midlands club moved into the quarter finals, boss Unai Emery stated that Watkins' injury was not as bad as feared.
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"It looked really bad when I saw it," teammate Leon Bailey told TNT Sports after the 4-0 win.
"It was an open wound. I didn't want him to come off but Jhon Duran did brilliantly. It was sad to see him come off."
Speaking of the injury, Emery told TNT Sports: "We don't know exactly what the (issue) is. Maybe for Sunday he could be available. Diego Carlos is something with his hamstring. Maybe he might not be available for Sunday."
Emery then added later: "It is no more than a cut. I think he could be available for Sunday but we will have to wait for then."