Watford are close to replacing boss Slavisa Jokanovic with Getafe and former Atletico Madrid manager Quique Sanchez Flores.
Jokanovic, 46, led Watford to automatic promotion from the Championship to the Premier League this season.
However his contract expires at the end of next month and talks have broken down over his contract demands.
Watford have now approached 50-year-old Spaniard, Flores, who is set to become the Hornets' fifth manager in a year.
It is understood former Chelsea midfielder Jokanovic asked for a pay rise the owners felt was beyond what they could pay.
Jokanovic was appointed last October and won 21 of his 36 games in charge as the Hornets finished second behind Bournemouth in the Championship.
He was the club's fourth manager of the season following stints in charge for Beppe Sannino, Oscar Garcia and Billy McKinlay.