A points deduction or a substantial fine could be imposed on Everton over their attempts to lure Marco Silva to Goodison Park when he was Hornets boss last season.

The long-running dispute between the Hornets and Toffees has escalated further with reports in The Times that an independent inquiry has been launched into Everton’s recruitment of their now manager.

The Hornets reported the Merseyside club to the Premier League last season for making an alleged illegal approach for the former Hull City boss when he was at the Vicarage Road helm.

It is reported that an inquiry could order the Goodison Park club’s hierarchy to hand over their phone and other records to a QC, who would look into whether there was any improper contact between the two parties.

Watford have consistently maintained that Silva was illegally approached and stated in July they would continue to pursue their complaint against Everton.

Silva was sacked by the Hornets in January with the Vicarage Road club citing Everton's attempts to lure him to Goodison Park as "the catalyst" for the decision.