On Wednesday, the shadow cabinet will hold discussions related to the plan to make the Labour Party's stance decisively pro-remain, the newspaper reported. Our members are remain.
The development also comes amidst reports that Mr Watson's increasingly loud calls for a second referendum have put him in the firing line of Corbyn loyalists, who have reportedly expressed growing frustration with his deviation from the official party line on Brexit.
"A ballot paper would need to contain real choices for both leave and remain voters".
He made the shift towards a public vote on any Brexit deal - from backing a referendum only in certain circumstances, to avoid no deal or a "damaging Tory Brexit" - after the disappointing European election results.
The poll also showed that Tories are aware of the threat that The Brexit Party poses to them if they fail to deliver Brexit, putting the Nigel Farage-led party as a greater threat to the Conservatives than their traditional opposition the Labour Party.
A large number of Labour MPs believe any deal on the terms of the UK's withdrawal needs to be put to a public vote, with the option to remain in the European Union on the ballot paper.
The majority (54 per cent) said they would see the destruction of their own party if necessary, with only 36 per cent putting the party's preservation above steering Britain out of the EU.
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"Our future doesn't need to be Brexit".
Amidst speculation that a victory for Boris Johnson, current frontrunner in the Tory leadership race, could boost support for independence in Scotland, the new figures have caused discord amongst the unionist parties, with Labour and the Liberal Democrats accusing the Conservative Party of being a threat to the Union.
Meanwhile Watson took his argument to Twitter on Tuesday, publishing a video in which he chatted with young people about their views on Europe, and asked them what the shadow cabinet - of which he is a member - should do. "We have to take a stand", he said. The verdict: "Be bolder, be braver".
However Labour MP Steve McCabe has said that "Labour have got to offer a much clearer choice" on Brexit.
McDonnell tweeted immediately afterwards: "Can't hide from hit we took last night".
In the past the party's official stance has been that it would back a public vote in the form of a general election and, if that were not possible, a second referendum.
However, Thornberry was dropped as Corbyn's stand-in at prime minister's questions earlier this month after strongly criticising the party's campaign in a TV appearance on polling day.