“I am positive, but it’s not finished yet. We’ll see in the next weeks. But I am positive, yes.

“Very close? Yes.”

Gracia,  appointed in January on an 18-month contract, is the 10th manager Watford have had since their Italian owners the Pozzo family took over at Vicarage Road in June 2012.

Having finished 14th in the table last season, the Hornets are currently eighth with 19 points from 11 games.

Gracia added: “I’m proud to be Watford manager.

“I don’t know how long I’ll be here, but I’m very proud to be at this club, to have the supporters we have, and to enjoy every day with the players. I’m very proud of all of them.”

Gracia was speaking at his pre-match press conference, reported on Watford’s official website, ahead of Saturday’s Premier League trip to Southampton.

The 48-year-old confirmed captain Troy Deeney is available to make his return to action at St Mary’s having missed the last three games with a hamstring problem.

Tom Cleverley, who has been out since January due a combination of hamstring and Achilles problems, is back in training but will not be involved in Saturday’s contest.

Gracia said of the midfielder: “He is not fit but this week he’s started to train with the team.

“I think it’s very good news for us. Just seeing him on that pitch at the same time as the rest of the players is something very, very special at this moment.”

Sebastian Prodl (hamstring) and Daryl Janmaat (knee) remain sidelined, and Etienne Capoue cannot be selected as he serves a one-match suspension having picked up his fifth booking of the season in last Saturday’s 1-0 loss at Newcastle.

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