Watford are confident Javi Gracia will be their head coach next season despite interest from Chelsea.
Gracia has emerged as a surprise contender for the job, with Maurizio Sarri close to joining Juventus.
However, Derby manager and former Chelsea player Frank Lampard is the front runner.
Gracia has just finished an impressive season, guiding Watford to their first FA Cup Final since 1984 and to 11th in the Premier League.
The Spaniard also achieved a record Premier League points total for the club and his ability to work within a transfer structure that includes a technical director has impressed Chelsea.
But there is a belief Gracia will be at Vicarage Road next season, given the loyalty he has shown to Watford.
He signed a new four-and-a-half-year contract in November, while that deal also contained the option for a further three years. The 49-year-old has shown loyalty throughout his career, especially during his time in charge of Almeria. In 2013, he guided the Spanish club to La Liga, but he left in the summer as the board wanted to overhaul the squad.
Gracia saw that as a betrayal of the players that had secured promotion and consequently he walked away.
He is an outsider for the Stamford Bridge job and even if Chelsea were to firm up their interest, he could prove hard to prise away.
