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Watford boss Javi Gracia is set to sign a new contract at the club next week, which will extend his stay in Hertfordshire until the end of the 2020/21 campaign.

The Spaniard has led the Hornets to a sensational start to this season, with his team lying in seventh place after winning six and drawing two of their opening 12 Premier League games.

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He now looks set to pen a contract extension, with Sky Sports reporting that the new deal that was first spoken of a couple of weeks ago is almost finalised.

Gracia signed an 18-month contract with Watford when he replaced Marco Silva, who left for Everto in January, and managed to steer the club to a 14th place finish. Should he sign the new deal, he will become the first Watford boss to do so since Malky Mackay in 2011 - a sure fire signal that the Hornets are looking to lay the foundations for a more stable platform.

Speaking about his proposed new deal, as well as his thoughts on job security, Gracia said: "We reached an agreement for the next few years, I have not yet signed but I will do in the next week. And I am happy because I think it's good for me, good for the club as well and we will see."

"As a coach you know, your job always depends on the results but in this moment what I can say is I'm proud to be part of this project.

"Not only for one year but for a long time and I think it's good for me, I feel happy here, my technical staff are happy as well. We try, within our job, to help and improve the team."

Next up for Gracia's men is a difficult Premier League fixture against unbeaten Liverpool at Vicarage Road this weekend.