Watford head coach Javi Gracia has confirmed he will sign a new contract next week.

The Spaniard replaced Marco Silva in January and guided the Hornets to Premier League safety, before opening the new campaign with five straight wins in all competitions.

Speaking at a press conference ahead of Saturday's match against Liverpool, in a video clip broadcast by Sky Sports News, Gracia said: "I haven't signed it yet, but I (will) do next week.

"I am happy because it is good for me and the club as well, then we will see."

Watford will resume the Premier League in seventh place, and host title-chasers Liverpool on Saturday.

On Thursday, the club confirmed Venezuela forward Adalberto Penaranda had signed a new five-year contract after receiving his work permit, and would now be available for competitive matches.