Manager Walter Mazzarri is to leave Watford after Sunday’s final game of the season at home to Manchester City.
The 55-year-old Italian was in charge of the Hornets, who are 16th in the Premier League, for less than a year.
Watford chairman Scott Duxbury said Mazzarri’s departure was confirmed after the board discussed “future goals and aspirations” with him.
“It was decided he will be stepping down from his position as the club’s head coach,” said Duxbury.
Watford’s next manager will be their ninth in five years and the eighth since the Pozzo family took over the club in 2012.
Monday’s 4-3 defeat at champions Chelsea was their fifth loss in a row, although the Hornets avoided relegation and are six points above the drop zone with a game to play.
The club announced in May 2016 that former Inter Milan boss Mazzarri would become head coach on a three-year deal from 1 July after the departure of Quique Sanchez Flores.