Watford are hoping to appoint Harry Kewell as coach of their Under 21 team.

The former Leeds and Liverpool winger, who retired last year after ending his playing career with Melbourne Heart in the A-League, has established a youth academy in his native Australia and is keen to return to England to launch a coaching career.

Harry Kewell retired last year after ending his playing career with Melbourne Heart

Liverpool have also shown an interest in luring the 36-year-old back to Merseyside as part of their youth development set-up.

Kewell spent five years at Anfield and was part of their Champions League triumph in 2005, but Watford are confident they can tempt him with a key role in owner Gino Pozzo’s plans to establish the club in the Premier League.

The former Leeds and Liverpool winger is keen to return to England to launch a coaching career

Since unveiling Quique Sanchez Flores as their new head coach earlier this week, Watford have been busy. Captain Troy Deeney has signed a new five-year contract and the club are closing in on a £5.7million deal for Etienne Capoue from Tottenham.

Matej Vydra, after two seasons on loan, has made his move from Udinese permanent. There have also been new five-year deals for Gabriele Angella and Craig Cathcart.

Liverpool have also shown interest in Kewell, who was part of their Champions League triumph in 2005

German-born Greece defender Jose Holebas, who kept Ashley Cole out of the Roma team, arrived this week for £1.8m. Watford are also pursuing Spurs’ Benjamin Stambouli, and Argentine winger Diego Perotti, having had a £7m bid accepted by Genoa.

Austria defender Sebastian Prodl and Lithuanian goalkeeper Giedrius Arlauskis arrived earlier in the summer.