It was reported last week that Serbia midfielder Kuzmanovic had turned down a move to Vicarage Road, while former Newcastle left-back Santon took to Facebook to deny even knowledge of any interest from the Hornets.
Pozzo, however, still believes he may be able to persuade the duo to join the newly-promoted Premier League side.
He told fcinternews: “At the moment I cannot go too far one way or the other, but I can say that talks are in full swing and negotiations continue.
“Are the two players intent on saying no to Watford? I am confident we can change their minds. I remain optimistic and always will be.”