Slavisa Jokanovic is the manager of the Hornets at the moment, but his current contract with the English club runs out in the summer.
Given the success the Serbian has had with Watford, one would expect him to stay at Vicarage Road, but an agreement over a new deal has yet to be reached.
Balague seems surprised at the current situation and has stated on Twitter that Watford are looking to bring in a manager from mainland Europe.
Strange. Watford not making any more steps to renew Jokanovic. I thought promoting a team would keep him at the job. 1/2— Guillem Balague (@GuillemBalague) May 23, 2015
Watford looking in the European market for the next manager 2/2— Guillem Balague (@GuillemBalague) May 23, 2015
According to a report in The Daily Mail earlier this week, both Newcastle United and Sunderland are interested in Jokanovic, and Balague's comments suggest that he will be available in the summer.
One suspects that Sunderland may not be interested in 46-year-old anyone as they have offered Dick Advocaat a new contract, as reported by Eurosport.