Watford have sacked head coach Paulo Pezzolano after just five months in charge and replaced him with former boss Javi Gracia.
Crunch talks were being held on Tuesday and the club hierarchy have now parted ways with Pezzolano, who becomes the 12th manager Watford have sacked in just five years.
Gracia, who was previously in charge for 66 games at Watford between January 2018 and September 2019, was the number one target to replace Pezzolano and has now agreed to return to Vicarage Road.
Pezzolano's reign third shortest at Watford
Pezzolano was appointed by the Hornets on May 13, replacing Tom Cleverley, who was sacked seven days earlier.
The Uruguayan endured a mixed start in the Championship this season after being backed heavily in the transfer market.
He took charge of 10 competitive games in all competitions.
Watford picked up only five points from their first six Sky Bet Championship games, but they have taken seven points from the last three and moved to within three points of the play-off places.
Pezzolano saw his side come from behind to beat Oxford 2-1 last weekend in his final game in charge.
The 42-year-old's reign is the third shortest in Watford's history, behind only Oscar Garcia (four games, September 2014) and Billy McKinlay (two games, September to October 2014).
Watford analysis: Pozzo has lofty ambitions
Analysis from Sky Sports News' Anthony Joseph:
Watford owner Gino Pozzo has lofty ambitions of promotion to the Premier League and the club spent big in the transfer window, including the marquee signing of Nestory Irankunda from Bayern Munich, but Pezzolano has not met the expectations of the club's hierarchy.
Watford fans chanted "you're getting sacked in the morning" as they trailed Portsmouth at half-time last week. However, they did salvage a 2-2 draw at Fratton Park and followed it up with another comeback to beat Oxford United 2-1 at the weekend.
The club now sit in 11th place in the English Championship having won three, drawn three and lost three as Gracia looks to turn around their fortunes. They were also knocked out of the EFL Cup in the first round to Norwich City.
In his first spell at Vicarage Road, Gracia steered the club to Premier League safety in 2018. The next season he took Watford to the FA Cup final and finished 11th in the league - their highest top-flight position since 1987.
However, he was sacked in his third season - with the club sitting bottom of the Premier League in September 2019.
That FA Cup run is still fairly fresh in the memory of the Watford support, who hold him in high regard.
Gracia was last in charge of Leeds United, when he replaced Jesse Marsch in February 2023.
The 55-year-old steered Leeds out of the relegation zone, but was relieved of his duties in May that year.