Watford boss Javi Gracia is close to agreeing terms on a new deal.

The Telegraph says Gracia is close to agreeing a contract extension with the Vicarage Road club.

The Spaniard and his representatives have been in talks with the club over the past few weeks and an announcement is expected soon.

Having initially put pen to paper on a 18-month contract in January, Gracia has impressed the Watford heirarchy.

The 48-year-old led the Hornets to five straight wins in all competitions at the start of the season - a run of form which had Watford battling it out in the top four of the Premier League - and has created a positive atmosphere among his squad.