Everton will hold talks with Watford to avert a heavy sanction should they appoint Marco Silva, the former head coach at Vicarage Road, as manager.

Silva is Everton's choice to replace the outgoing Sam Allardyce, but the acrimony following an alleged illegal approach last November has not receded, despite the Portuguese coach's subsequent dismissal by Watford.

The Hornets want significant compensation for the disruption to their campaign and have filed an official complaint to the Premier League. In the most extreme scenario, Everton face a points deduction if the accusations of ‘poaching’ are proven, but a fine is the greater possibility should it go that far.

Watford claim illegal negotiations were conducted following the sacking of Ronald Koeman in October, a point they first raised in a public statement in January when dismissing Silva.

The Premier League urged the clubs to mediate rather than launch their own probe, and there was a meeting between Everton and Watford in April in an effort to resolve differences.