Emery would rather retain Watkins but acknowledges the striker could depart if Villa receive suitable terms and secure a successor.
The Saudi Arabian side have had four approaches turned down for the England forward yet remain determined in their efforts.
It is believed Watkins is eager to move to Al-Hilal because of the substantial salary package available.
Villa have put forward a contract extension running until 2030 and made clear they want him to stay, though they have evaluated possibilities should he leave, with Nicolas Jackson identified as a key option.
When questioned about Watkins, Emery stated the situation is evident. The player has attracted interest and belongs to Villa. He does not wish to sell him, though circumstances could shift if both the player and club find it beneficial and a suitable replacement is available.
He explained this is standard procedure they have followed previously. Watkins remains their player and an excellent striker, and despite fluctuations in form, they maintain confidence in him.
The player is currently contracted to Villa with the transfer window having 10 days remaining. Emery expressed satisfaction with Watkins and suggested if he stays, his standards will persist. Should he depart, it would prove positive for all parties involved.
When pressed on whether Watkins has requested to leave and his availability for the Brighton fixture, Emery said he was uncertain and noted the player had been frequently mentioned in media coverage.
He observed that football evolves. Villa supporters begin and end their lives as Villa supporters. The players are professionals. Watkins is their player.