Watford will reportedly appoint Quique Flores as their new head coach after talks with Slavisa Jokanovic broke down over wage demands.
Jokanovic was appointed as Watford's fourth coach of the season in October and guided the club back into the Premier League after finishing second in the Championship.
The Serbian's current deal expires at the end of June, and it is thought that the 46-year-old has been offered significantly improved terms in the region of a £1m basic salary, plus another £1m in bonuses.
However, Jokanovic is said to have demanded a £2.5m salary, which would have broken the Hertfordshire club's wage structure.
Watford have now turned their attention to former Atletico Madrid coach Flores, who is out of work after leaving Getafe earlier this year.
The Hornets are hoping to announce the 50-year-old as their new boss in the coming weeks, according to The Guardian.
Flores guided Atletico to Europa League and Super Cup success in 2010.
Germany
Switzerland
Hungary
Scotland
Spain
Italy
Croatia
Albania
England
Denmark
Slovenia
Serbia
Austria
France
Netherlands
Poland
Romania
Belgium
Slovakia
Ukraine
Portugal
Turkey
Georgia
Czech Republic