Nigel Pearson is set to be confirmed as new Watford manager after Sam Allardyce decided he did not want the job.

Sportsmail revealed on Monday how the club were ready to move away from their recent policy of employing foreign coaches by appointing a British boss.

And former Leicester boss Pearson, who is currently out of work, has been offered the job as Quique Sanchez Flores’s replacement.

Nigel Pearson has emerged as a shock contender for the vacant manager’s job at Watford

Watford, it is understood, have offered Pearson a contract until the end of the season with the option for another 12 months.

Pearson is keen to bring former Foxes coach Craig Shakespeare to the club as his No 2.

Hornets chiefs have focussed on recruiting a British coach - although they are believed to have interviewed former Real Betis boss Quique Setien - in their search for a new head coach.

Pearson would accept a deal until the end of the season with the option for another 12 months

And it is understood the club did have a genuine interest in Allardyce - who is viewed as a Premier League survival specialist - but the former England boss is said to have had some reservations about taking the job at Vicarage Road.

It is understood family commitments prevented Allardyce, who lives in Lancashire, from accepting the job. There was a reluctance to relocate from his northern base.

Watford have also held talks with Chris Hughton and Paul Clement in there search for a homegrown manager.