Watford manager Xisco Munoz left the Premier League club with the team 14th in the Premier League table after seven matches this season, the club said on Sunday.
"The Board feels recent performances strongly indicate a negative trend at a time when team cohesion should be visibly improving," Watford said in a club statement.
"No further club comment will be available until the imminent announcement of a new Head Coach."
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Watford struggled in the top flight, collecting seven points from seven matches after suffering four losses and it is four points above the relegation zone.
Xisco's last match in charge was Saturday's 1-0 defeat at Leeds United.
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