The Watford Observer understands Slavisa Jokanovic has been offered a new contract by the Hornets on improved terms, however, the club have refused to comment on the matter.

The Serbian’s current contract expires this summer and discussions over extending his stay at Vicarage Road were held off until the end of the Golden Boys’ Championship campaign.

Talks are now underway and a source confirmed today that while the former Chelsea midfielder has been offered a new deal, a contract has yet to be agreed. 

Watford refused to comment on whether a deal had been tabled yesterday but did state talks between the club and Jokanovic were underway. 

Jokanovic, who joined the Golden Boys on October 7, guided Watford to the Premier League and a second-place finish in the Championship.

He has stated on several occasions he is happy to remain with the Hornets but has been linked with jobs at Sunderland, Newcastle United and Leeds United.

The Hornets boss was asked after Watford’s final Championship fixture of the season if hed like to stay at Vicarage Road.

He said: “I am happy here. It is a great club who gave me a great chance. I believe I have done a good job and I believe I have given them a little back.

“Now we must continue our life and start thinking about what is best for all of us.”