“On behalf of the club, the Pozzo family acknowledges that Sean’s positive contribution to Watford FC dates back long before his appointment as manager in June 2011.

“The Pozzo family also recognises Sean’s impeccable conduct, representing the Hornets with honour and dignity at at all times.

“His achievements under difficult circumstances mean that he will be rightly be held in high regard by Watford supporters.

“Everyone at the club extends their warmest wishes to Sean for the future.”

Dyche was appointed Hornets manager last summer after rejecting the chance to follow Malky Mackay to Cardiff City. Despite Danny Graham, Will Buckley and Don Cowie moving on – with Marvin Sordell also sold in January – Watford recovered from a slow start to the campaign to finish 11th in the Championship, their highest position for four seasons.