Spurs make the short journey to Vicarage Road looking to build on their 3-0 win over Norwich City at White Hart Lane on Boxing Day.
Mauricio Pochettino’s men are currently in fourth place in the Premier League table and just six points behind leaders Leicester City heading into Monday’s clash.
And former Liverpool man Lawrenson is tipping the Lilywhites to claim a 2-1 win over the Hornets on Monday to keep their Champions League bid qualification going.
Lawrenson told BBC Sport: “Watford are in danger of stealing Leicester’s limelight, they have a real goal threat and are one of a few teams playing 4-4-2. But they have picked up more points away from home then at home this season.
“Tottenham are looking good but the way the league is now, if you win three games people start talking about the title! It happened with Liverpool the other week.
“Tottenham won’t win the league but they do look like Champions League contenders. They have only lost two games but they draw too many.
“They look like signing a striker in January in case Harry Kane falls over and that could be a shrewd move.”
Kane has been in fine form for Spurs in recent weeks and scored two of their goals as they beat Norwich in north London on Saturday.
The England striker, who was named the PFA young player of the year last season, has already netted 11 times in the top flight so far this term.
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