As a player, Flores made nearly 300 appearances during a 10-year spell at the Mestalla and even enjoyed a two-year stint as manager between 2005 and 2007.
The hotseat at the La Liga outfit is up for grabs once again, after previous boss Neville was sacked after just four months in charge.
But Flores insists he has no plans to leave the Hornets this summer, despite admitting his dismay at his former club's fortunes.
According to the London Evening Standard, Flores told reporters: “I am completely happy at Watford. I love the fans of Watford. I am happy with the people working for Watford. We are a family.
“I am sad for the situation of Valencia and Gary Neville. Whenever a coach does not finish the project it is obviously bad news. I am expecting the club will recuperate and have a good run.”
Flores has enjoyed a highly successful first season in the Premier League, defying many pre-season predictions of relegation to guide his side to the safety of mid-table, while also securing a trip to Wembley in the FA Cup semi-final.
This season's success has not gone unnoticed, with Flores also seeing his name in the frame for the Spain job amid rumours that current boss Vicente del Bosque is to step down after Euro 2016.
And while flattered to be linked with such a high-profile position, Flores reiterated his commitment to his current employers, adding there was nothing else on his mind ahead of a tough trip to Arsenal on Saturday.
“It is good that in Spain they consider that I am ready for that," he said. "But my link now is completely with Watford.
“There is not any possibility now to think of anything that is not Watford. Today it is Watford, tomorrow is Watford and two months it is Watford.
“I do not want to consider anything now that is not Watford. The fans need to know that the coach, and also the players, is completely focused to finish the season the best way possible.”
Watford are currently 14th in the Premier League table on 37 points.