Javi Gracia is very close to signing a new deal to extend his tenure as Watford head coach, the Watford Observer understands.

The Hornets boss revealed last month that talks over a new contract were “going well”. We have been told negotiations have continued to progress positively with the club's hierarchy and the Spaniard is expected to put pen to paper on a three-year deal shortly.

Gracia signed an 18-month contract when he moved to Vicarage Road in January following the departure of Marco Silva and successfully guided the Hornets away from the fear of relegation to a 14th-place finish.

Having emerged with credit in that firefighting role, Gracia has continued to impress by guiding Watford to their highest points total after the first 10 games of a top-flight season.

The benefits of retaining the same head coach from last term and through a full pre-season have been evidenced in many respects, including the building of an excellent spirit and togetherness within the squad as well as developing a clear playing identity, with Gracia’s pressing style a feature of his approach.

Noted for his attention to detail, the former Malaga and Rubin Kazan boss has also impressed with his tactical flexibility, both between and within games. Having made a strong start to the season with a 4-4-2 formation, Watford have bounced back from a downturn in results and taken six points from their last two matches with a fluid 4-5-1 line-up.

“I’ll like to be here more time because I am very settled here,” Gracia told the club website last month.

“I see my long-term future here and I can fulfil my ambitions at this club. We are talking and talks are going well.”