The Hornets and their lawyers are still in discussions over what the next steps will be regarding their legal case with finance company LNOC, the Watford Observer understands.
In November Watford FC lost its High Court battle over loans worth £2.6m which were arranged by former owner Laurence Bassini.
The club had initially suggested they were planning to appeal against the ruling.
During a hearing at the High Court in October, Judge Mackie QC heard that the loans had been “forward finance” deals borrowed against money coming to the club from Football League pool funds and also from Swansea City FC for the transfer of striker Danny Graham.
The loans made against pool funds were later found to be in breach of Football League regulations. This resulted in a transfer embargo on the club.
During the case, Watford FC’s barrister Nicholas Randall, argued that Mr Bassini was not acting in the best interests of the club when he organised the loans and that they were not binding.