Don't think this is happening, Watford are digging their heels in and his advisors will have informed that leaving a job so soon after starting won't look good. If he does a full year there, has a good season (top half finish or a cup run) then he'll probably get other offers next summer when it will be far easier to pack up and leave.
Would be willing to give him go but just don't see it panning out. With every day that passes it gets more likely that we'll probably just give it to Unsworth for the rest of the season. Definitely don't want that personally but we're badly low on options.