The Baggies have lost their last six matches across all competitions and have won just one of their last 27 Premier League outings - a dismal run of form which stretches back to August.
West Brom now sit eight points adrift of safety as a result, and reports suggested that the club were considering sacking Pardew after only four months at the helm.
However, PA claims that they will not pull the trigger next week, although Pardew's job remains under review and the issue will be revisited following next weekend's clash with Leicester City.
West Brom's improved display against Watford is thought to have been enough for Pardew to be given more time to turn things around, although the board are reportedly already planning for life in the Championship.
Pardew, who replaced Tony Pulis at The Hawthorns in November, has won just one of his 15 Premier League matches at the helm.