Xisco Muñoz has been sacked as Watford manager.
Muñoz is the first managerial casualty this season, with the club sat 14th in the Premier League table.
A club statement said: "Watford FC confirms Xisco Munoz has left his post as the club's Head Coach.
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"The board feels recent performances strongly indicate a negative trend at a time when team cohesion should be visibly improving.
"The Hornets will always be grateful to Xisco for the part he played in securing last season's promotion and wish him well for his future career in football.
"No further club comment will be available until the imminent announcement of a new Head Coach."
Watford have taken seven points from a possible 21 in the opening seven games of the Premier League season.
They lost 1-0 to Leeds at Elland Road on Saturday in Muñoz's final game in match in charge, with goalkeeper Ben Foster describing the game as a "1-0 battering".
Muñoz guided the Hornet's to automatic promotion from the championship last campaign, after replacing Vladimir Ivic in December 2020.
The club's hierarchy were reportedly ready to step in and end the Spainaird's time in charge ahead of the Leeds fixture after a string of disappointing performances, with the Saturday's game the final straw.
The early favourite to replace Muñoz in the hot seat is fellow countryman Diego Martinez.
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Martinez led Granada to La Liga promotion in 2019, and enjoyed the club's best-ever league start in 2019-20 gaining 20 points in the opening ten games, eventually finishing seventh in his debut top flight campaign.
Other names in the mix include former Nottingham Forest boss Chris Hughton, who faced the axe at City Ground a fortnight ago, Eddie Howe, Chris Wilder and Quique Sanchez-Flores, who could make a sensational return for a third spell at Vicarage Road.
Frank Lampard could also be a contender, with the former England international yet to find work since his sacking at Chelsea back in January.
Watford will have a short time to reassess and confirm an appointment with the international break coming up, before welcoming Liverpool to Vicarage Road in two weeks time.
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