Watson has missed the past three games with a broken collarbone he sustained against Port Adelaide in round 15.
The Bombers captain will have scans next week to determine whether he is right to go against the Magpies.
"We're hoping he plays this week. I think he is due for an x-ray on his collarbone on Thursday," Essendon coach James Hird said after Friday night's 56-point loss to Hawthorn.
"If that comes up well, he'll play against Collingwood."
Watson will be an important addition to a Bombers side that Hird conceded was "taught a lesson" by Hawthorn.
Hird labeled the Hawks as the best side the Bombers have played this season.
"Their forward line is scary. It's hard to know who to send to who,” he said.
"If ‘Buddy’ (Lance Franklin) doesn't get you, then (Jarryd) Roughead does. Then there's (Jack) Gunston and then there's (Luke) Breust, and (Cyril) Rioli seems to pop up if the other four or five don't get you."
Despite the heavy defeat, Hird still believes his side belongs alongside the upper echelon of Hawthorn, Geelong and the Sydney Swans.
The Bombers are yet to beat the Cats, Swans or Hawks this season, falling to the Cats by 28 points in round seven and the Swans by 48 points in round 10.
"We'd like to play those sides again and we'd like to get a chance to play against them again in the finals, and we've obviously got a bit of work to do to be able to do that," Hird said.
"We certainly need to win a number of games to give ourselves the opportunity to make the top four. But … if we play the game we want to play it, then we are a chance.
"Tonight we didn't execute the way that we needed to to beat a really good team."
