Javi Gracia is poised to sign a new three-year, long-term contract as Watford head coach.

His representatives have met with officials of the Premier League club and an agreement is close to being announced.

Gracia has hugely impressed since taking over from Marco Silva last January when Watford were on a run of just one win in l1 league matches and in danger of getting sucked into the relegation places.

The 48-year-old endured a tough start but Watford stayed up, beating Chelsea along the way, and have undoubtedly pushed on. Gracia’s work in re-organising the team, integrating some key players who appeared to have been marginalised, such as Troy Deeney and Etienne Capoue, and developing young talent such as Will Hughes, who was unfortunate not receive an England call-up alongside team-mate Nathaniel Chalobah, has not gone unnoticed.

Awarding the Spaniard a three-year deal, as sources close to him have suggested will be agreed, would also appear significant as it is a sign not just that Watford are happy with Gracia’s work but are striving for more longevity with their managerial appointment. Silva, for example, was on a two-year deal.

Gracia is the 10th Watford head coach to work at the club since the Pozzo family acquired it in 2012 and although the coaches left for different reasons, and the club continued to thrive, a longer-term appointment would also help progress and provide a little more continuity in the dug-out.

Gracia was the Premier League's manager of the month in August as Watford made a flying start credit: GETTY IMAGES

Gracia, who was out-of-work when he was hired by Watford, having left Russian club Rubin Kazan the previous June, signed an initial 18-month deal which currently takes him up until the end of this season.

The new contract would remove any uncertainty over the future of the 48-year-old who last summer was also the first Watford head coach to stay in charge from the end of the previous season since 2014.

Gracia also works hard on the training ground and enjoys a good relationship with the club’s hierarchy and fits the mould of the kind of manager they want in being a coach first. That benefit was felt from the start of the season when Watford enjoyed a run of four straight wins with victories over Brighton, Burnley, Crystal Palace and Tottenham Hotspur. Gracia was subsequently named manager of the month for August.

Watford are currently ninth in the table on 13 points after eight games. They were unfortunate to lose against Arsenal and Manchester United and although they were heavily beaten by Bournemouth last weekend the dismissal of Christian Kabasele was a contributing factor.

Pundits had cast Watford as relegation candidates, especially after selling Richarlison to Everton for £40million and not buying a striker, but the club are confounding those predictions. From their summer transfer dealings only goalkeeper Ben Foster has gone straight into the first-team but Gracia has worked on improving what he inherited and what is a strong squad and is set to be rewarded.

Gracia has instilled discipline in the Watford squad credit: REUTERS

Gracia is also a disciplinarian – a new fines system has been introduced while the players ‘clock-in’ every morning as they arrive for training – but is a popular figure at the club and operates an ‘open door’ policy.

He has adjusted well to English football having gained promotions in Spain with Cadiz and Almeria before impressively guiding cash-strapped Malaga to two top-half finishes in La Liga.

Gracia’s new contract is expected to be announced in the next few weeks. It is also expected that Watford’s dispute with Everton over Marco Silva will come to a head after an independent inquiry into the alleged “tapping up” of the Portuguese was launched.

Watford were enraged by Everton’s pursuit of Silva last season. Having been fifth in table when Ronald Koeman was sacked as Everton manager on October 23, leading to a five-week long saga of trying to hire Silva, Watford were in 10th place but just five points outside the relegation zone when the Portuguese was dismissed.

Watford had made it clear they would not entertain an approach for their manager, who did not have a break clause in his two-year deal, and rejected financial offers from Everton. They eventually made a formal complaint over Everton's conduct. The case is now in the hands of lawyers appointed by the Premier League to examine the evidence and basis for any charge.