The Championship side have made the move to end Paulo Pezzolano's tenure after only five months and 10 matches in control, confirming the reappointment of ex-manager Javi Gracia as his replacement.
It is understood that the Uruguayan coach, appointed in May to replace Tom Cleverley, along with his technical staff, were instructed not to lead practice on Wednesday as rumors about his imminent departure grew on the previous day.
Pezzolano was summoned for a meeting where he became the 11th head coach Watford have moved on since the start of 2020.
"The club is delighted to reappoint Gracia," stated Watford's chairman and CEO. "His enthusiasm, guidance and clear strategy will help us build consistency, unity and momentum.
"We are sure there are many supporters who hoped Javi had stayed on in the past. With this young and exciting squad, we are convinced his experience and attributes are precisely what we need now."
Gracia guided Watford to the FA Cup showpiece for the only other occasion in their history in that year, but was dismissed a few matches into the next season and most recently coached at Leeds in 2023.
"For me, the feeling I have right now is that I'm returning home. It was the most enjoyable time of my career," Gracia remarked. "There are very good memories and we have unfinished business at Watford. For us, it's a further significant move in our journey.
"This is something special for us, and simultaneously we are highly motivated for this season. If we are united, we are stronger."
The decision to remove Pezzolano comes despite their win against Oxford at their home ground on Saturday, which moved them to eleventh place in the second tier after a difficult opening that earned a handful of points from the initial six matches.
Pezzolano is said to have departed dismayed by the decision to sack him, having guided the side to a three-match unbeaten run that also included a home win over Hull City and a tie at Portsmouth, placing them three points off the promotion playoffs.
The coach arrived shortly after the conclusion of last season with a strong record of leading teams to advancement in La Liga, South America and his home country.
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