Watford head coach Javi Gracia will sign a new contract at the club next week which will take him up to the end of the 2020/21 campaign.
Gracia signed an 18-month contract when he replaced Marco Silva in January and managed to overturn a run of one win in 11 Premier League matches under his predecessor to secure a 14th-place finish.
Speaking about the contract, he said: “We reached an agreement for the next few years, I have not yet signed but I will do in the next week.
“And I am happy because I think it’s good for me, good for the club as well and we will see.”
The 48-year-old will become the first boss at Watford to sign a contract extension since Malky Mackay in 2011.
Watford are currently seventh in the Premier League table having won six, drawn two and lost four.