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"Watford Football Club confirms the departure of Head Coach Javi Gracia," Watford said in a statement, adding that the appointment of a new coaching team was "imminent".
The Spaniard had been a popular figure at Vicarage Road -- guiding the club to 11th in the Premier League and a first FA Cup final for 35 years last season.
However, his team were blown away 6-0 by Manchester City at the Wembley final, and the 32-year-old has paid the price for picking up just one point from the first four league games of the new campaign.