Javi Gracia will sign a contract extension at Watford next week, chief executive Scott Duxbury has confirmed.

Duxbury was quizzed on the matter of a new deal for Gracia, which has been somewhat of an open secret for a number of weeks, at a fans forum last night.

Gracia has impressed since taking the reins at Vicarage Road in January, helping the Hornets stay up last season and leading a fine start to this which has them sitting seventh in the Premier League.

His efforts are set to be rewarded with what is expected to be a three-year deal, making Gracia the first Watford head coach to extend his contract with the club since Malky Mackay.

He took over from Marco Silva who left the club in a perilous position after a torrid run of results and initially put pen to paper on an 18-month deal.

With both players and Gracia himself speaking about the importance of continuity this season, it is little surprise Watford have decided to stick with the 48-year-old Spaniard for the foreseeable future.