The Hornets were defeated 3-0 in a crucial fixture against Norwich City on Friday, which has seen the team slump into the relegation zone.
This has placed pressure on the experienced manager who has failed to guide the squad to a victory since beating Manchester United in November.
According to The Mirror, Ranieri is now just hours away from being fired by the club following their defeat, with Watford considering their options.
Club owner Gino Pozzo, has overseen 14 different coaches in less than 10 years, with Ranieri already being the second manager that the Hornets have had this season.
There have also been concerns regarding the team spirit, which is reportedly fractured at the moment, with the atmosphere being described as toxic.
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