Watson, who interviewed for the Arizona Diamondbacks' GM job last year that went to Kevin Towers, just completed his fifth season in charge of the Dodgers' Minor League system, which was named the best in baseball in 2010 by Topps.
Baltimore has already interviewed Jerry Dipoto and Tony LaCava for the job.
Watson joined the Dodgers from Cleveland, where he was scouting director. He also was scouting director for Cincinnati.
As of early Tuesday morning, the Orioles have not reached out to the Dodgers concerning executive Logan White, another name that has been rumored in their GM search. It still remains a possibility that Baltimore asks the organization for permission to interview White in the next few days.