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Despite the Hornets' confirmed relegation from the Barclays Premiership, the board at Vicarage Road have demonstrated their belief in the 36-year-old by securing his services until 2010.

Boothroyd told the club's website: "I feel very fortunate to work with a chairman, chief executive and board who allow me to do the job I need to do."

He added: "I was given my chance in 2005 and I think loyalty works two ways. I'm thrilled to be committing my immediate future to Watford - a club who I know can do great things."

The former Leeds coach was appointed by the Hertfordshire club in March 2005 as the long-term replacement for Ray Lewington, and he helped them to maintain their place in the Coca-Cola Championship that season.

Despite little being expected of his side he led them into the Coca-Cola Championship play-offs in his first full campaign in charge, and then saw them beat his former employers 3-0 in the final to clinch a place in this season's top flight.

Boothroyd added: "I'm a great believer in stability and it's important that our thinking goes beyond the short-termism you often see in football.

"We have great ambitions for this club and with continuity I only see good things for the future. This season, the way the fans have behaved towards me and the team has been very humbling.

"It's only right we give those people something to shout about once again and we will be working hard to do that."