Watford Football Club have made the decision to terminate their manager's contract after just five months and 10 matches in control, confirming the return of ex-manager the Spanish coach as his replacement.
Reports suggest that Pezzolano, appointed in the spring to replace Tom Cleverley, along with his technical staff, were told not to lead training on Wednesday as speculation about his imminent departure grew on Tuesday.
The 40-year-old was summoned for a meeting where he was named the 11th head coach Watford have let go since the beginning of 2020.
"We are delighted to welcome back Javi," said the club's chief executive. "His enthusiasm, guidance and clear strategy will foster consistency, togetherness and momentum.
"We are sure there are many supporters who wished Gracia had never departed in 2019. With this young and exciting squad, we are certain his experience and attributes are exactly what we need at this moment."
Gracia previously led the team to the FA Cup showpiece for the second time in their history in 2019, but was sacked a few matches into the following campaign and last managed at Leeds United in last year.
"Personally, the emotion I have in this moment is that I'm going back home. It was the most enjoyable time of my professional life," he stated. "There are fond recollections and we have loose ends at Watford. For us, it's another significant move in our career.
"It is something special for us, and simultaneously we are very ambitious for this season. If we are united, we are more powerful."
The decision to remove Pezzolano comes even after the team's win against Oxford at Vicarage Road on Saturday, which moved them to 11th in the second tier after a slow start that earned a handful of points from the first six games.
The Uruguayan is reportedly departed dismayed by the decision to sack him, having guided Watford to a undefeated streak of three games that also included a victory at home over Hull City and a draw at Portsmouth, placing them three points off the promotion playoffs.
The coach arrived shortly after the conclusion of the previous campaign with a strong record of guiding clubs to promotion in La Liga, Brazil and Uruguay.
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