Watford are expected to appoint former Atletico Madrid boss Quique Sanchez Flores as their new manager after talks to extend Slavisa Jokanovic's contract broke down over his wage demands.
The Serbian former Chelsea defender was appointed as the Hornets' fourth coach of the season in October, and would go on to guide the club back into the Barclays Premier League as runners-up to Bournemouth.
Jokanovic's current deal expires at the end of June, and Press Association Sport understands the 46-year-old had been offered significantly improved terms of around £1million basic salary, plus another £1million in performance-based payments.
However, Jokanovic was seeking some £2.5million in wages alone, which would not only have broken the pay structure of the Vicarage Road club, but also pushed Watford out of line with the basic earnings of other more experienced managers in the top flight.
Watford hope to be in a position to announce Sanchez Flores' appointment within the coming weeks.
The 50-year-old Spaniard will bring an impressive CV to England, having guided Atletico Madrid to the Europa League title in 2010 with a win over Fulham in the final, as well as coaching in Portugal at Benfica and more recently with Al Ain in the United Arab Emirates.