Slavisa Jokanovic is almost certain to leave Watford after the Hornets head coach failed to agree a new contract with the club.

The Serbian’s current deal expires next month and it is highly unlikely he will remain at Vicarage Road after contract talks were unsuccessful.

Jokanovic took charge of the Golden Boys in October on a short-term deal and led the club into the Premier League after a second place finish in the Championship.

The 46-year-old stated on several occasions towards the end of the season that he wanted to remain in charge of Watford and that discussions over a new deal would take place after the campaign had ended.

They began shortly after the Hornets’ final match of the season on May 2.

Jokanovic was offered an improved one-year rolling contract by the club but it has been reported that was only a £1,000 a week raise on his existing deal, which is believed to be around £400,000.

A source close to the Hornets boss told the Watford Observer today that figure was correct.

It was an offer Jokanovic, who has been linked with Premier League sides Sunderland and Newcastle United, was disappointed with.

We understand he asked for a significant increase on the salary offered and that he wanted a three-year agreement.

Watford, who have refused to comment on contract talks, had hoped to reach an agreement but are understood to be unwilling to match those terms, which would have seen Jokanovic earn more than £2 million a year.

With negotiations at an impasse the Hornets have drawn up a list of replacements for Jokanovic and Spanish coach Quique Sanchez Flores is believed to be their first choice to succeed the former Chelsea midfielder, who will leave Watford with the highest winning ratio of any Hornets manager or head coach.

Flores, who speaks English, is currently unemployed after leaving Spanish club Getafe in February for personal reasons. He was in charge of the Azulones for only six weeks before announcing his departure.

A former Spanish international defender, Flores previously managed at Valencia and Atletico Madrid and won the Europa League with Atleti in 2010.

He has tasted further cup success during spells in charge of clubs in in Portugal and the UAE).

Former Chelsea boss Roberto Di Matteo, who won with Champions League with the Blues in 2012, has also been linked with the head coach’s job at Watford.

The Italian resigned from German club FC Schalke this week after seven months in charge.