According to a report by News Limited published in the Daily Telegraph, Lloyd has been flown in to India to work with players following Australia's 10th worst defeat in their 136-year history in the second Test.
However according to the newspaper, Lloyd's arrival preceded the sacking of Watson, Mitchell Johnson, James Pattinson and Usman Khawaja, last Monday.
Lloyd works across several CA-affiliated teams and was scheduled to arrive before Australia's tour turned sour.
"Before the tour, we identified this as a good opportunity for him to work with guys before the second and third Tests," a Cricket Australia spokesman was quoted as saying by the newspaper.
"Michael (Lloyd) works across a lot of our programs and a lot of our teams. He is familiar with a lot of the players. It was a pre-planned arrangement, it's nothing to do with the past two days. Some of the players have existing relationships with him.