Javi Gracia's new contract keeps him at Watford until 2023

Watford manager Javi Gracia has signed a new four-and-a-half year contract at the club.

The Spaniard's new deal keeps him at Vicarage Road until 2023 with the option for a further three years.

"I am very happy to extend my contract," Gracia told the club's website.

"I am very proud in this moment to be part of this club and to belong here for more seasons.

"I think in this moment, this team is doing a lot of things well, but they know that being demanding, we can improve and compete better day-by-day.

"That's our target, to be demanding and to be ambitious. We don't know what target we can achieve, but I believe in this group of players and I think we will be able to give our supporters something to enjoy with our play and our results as well."

2:59 Highlights from Liverpool's 3-0 win over Watford in the Premier League Highlights from Liverpool's 3-0 win over Watford in the Premier League

Sky Sports News reported earlier this month the Spaniard would sign a new deal in the coming weeks.

He signed an 18-month deal upon arrival at Watford in January 2018 and managed to overturn a run of one win in 11 Premier League matches under his predecessor to secure a 14th-place finish.

The 48-year-old becomes the first boss at Watford to sign a contract extension since Malky Mackay in 2011.

The Hornets, currently in ninth place in the Premier League, travel to Leicester on Saturday where a win could take them up as high as sixth.