Javi Gracia insists he does not want to place any limitations on the team’s potential and hopes he achieve something special at Watford after signing a long-term contract extension.

The Spaniard has agreed a new four and a half year contract at Vicarage Road with the option of an additional three years.

Gracia’s new deal is no surprise although the length of the contract was somewhat unexpected but he has been rewarded for an impressive first year in charge after succeeding Marco Silva in January.

The Watford head coach has guided the club to ninth in the Premier League and does not want to put any constraints on their long-term ambitions.

Gracia said: “I think in this moment we have a very good squad and I would like in the future we keep all these players to build something special.

“They [the board] don’t need to say anything. They showed they trust me and my job. I’m very grateful and I try to do my best every day and help the club to improve the level of our job.”

The 48-year-old, who led the club to their best start to a top-flight season earlier in the campaign, said: “The best way to improve is in each game any maybe in the future we will be able to achieve something different. With the players we have in this moment, I think we can improve our best position in the league and we will try to do it. Day by day, with that mentality I think we will be closer to achieving something good for the club.

“It depends on different circumstances. I prefer not to put a limit on this team because I prefer to show day by day what we are able to do.”

Gracia was asked if he could achieve all his personal ambitions by remaining at Watford and he was keeping an open mind on his targets.

He said: “My main target and principle objective is to be happy. In this moment I can tell you I’m happy working here. I don’t know if I could be happier training in a club that is winning the championship. I’m not sure about that.

“In this moment I feel happy here because the club helped me to feel this way. We will see. I think my target in this moment is to try to help the team improve the way I want to improve my work myself. I will try to help the club improve and we will see. I wish to win something with Watford and I would like to but we will see. It depends on many things.”