Malky Mackay has not resigned as Watford manager but the Hornets have yet to confirm reports that he has been given permission to talk to Cardiff City about their vacant manager’s post.

It had been widely reported this morning that Mackay had ended his tenure at Vicarage Road, ironically two years to the week since he was appointed, but it has been confirmed to the Watford Observer that this is not the case.

However, Cardiff remain confident they will get their number one choice to succeed Dave Jones, with sources close to the south Wales club suggesting a compensation figure in the region of £300,000.

These latest developments come almost two weeks since it was first claimed Mackay was interested in the Bluebirds post, with suggestions that he was interviewed before going on holiday.

The Hornets consistently confirmed no official approach for Mackay had been receieved, but that was not enough to prevent the 39-year-old from being backed in to odds-on favourite over the weekend, with sources convinced he would take over at Cardiff City Stadium.

However, events took an unexpected twist when Alan Shearer was the subject of a major gamble earlier this week and subsequently held talks with the Cardiff board, only to delcare these "unsuccessful".

The Bluebirds immediately turned their attention back to Mackay and finally made an official approach yesterday, but this was refused by Hornets owner Laurence Bassini.