Slavisa Jokanovic’s wage demands are the reason the Hornets head coach has yet to agree a new contract with the club, the Watford Observer understands.

The Serbian guided the Golden Boys to promotion to the Premier League this season but his current deal at Vicarage Road expires this summer.

We reported last week that Jokanovic had been offered a new contract by Watford on improved terms, however, the former Chelsea midfielder told national media over the weekend that a deal is “not close” to being completed.

Jokanovic stated on several occasions towards the end of the campaign that he would like to remain the Hornets’ head coach.

But his future remains unclear and it has been reported that Premier League sides Newcastle United and Sunderland - in addition to Championship club Leeds United - are monitoring Jokanovic’s situation.