Everton have turned their attention to Silva as part of their long search to replace Ronald Koeman, who was sacked last month. They have already looked at Sam Allardyce and Sean Dyche for the role but now want to speak to the 40-year-old Portuguese who has started well at Vicarage Road.
Silva is interested in speaking to Everton if a deal can be agreed between the clubs, but Watford today rejected Everton's approach. Watford do not want to lose Silva mid-season - he has only been in charge for 12 games - and believe that having said no to Everton's approach today that the matter is now closed. There is no release clause in Silva's Watford contract, meaning that Everton's only option is to offer Watford a compensation package so lucrative that they cannot turn it down.
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After nearly saving Hull City from relegation, Silva signed a two-year contract at Vicarage Road earlier this summer which would expire at the end of next season, having turned down Porto, Crystal Palace and West Ham United to take the Watford job. He is already on the radar of Arsenal and Manchester United as a potential future manager and sees his future managing one of England's top clubs, even ahead of a return to Portugal to coach Benfica.
The arrival of Silva at Watford, replacing Walter Mazzarri, sparked an instant improvement in their form but they have lost their last three Premier League games and have slipped down to ninth in the Premier League table.
Internal candidate David Unsworth has been in caretaker charge at Goodison Park and was understood to have every chance of earning the job on a permanent basis but results have failed to improve under his brief stewardship and Everton are now looking for inspiration from outside the club.