Watford tell Malky he's in with a shout

"We are all behind him and feel it is the right decision at this time. He has the respect of all the players, management and the board.

"Malky is a natural leader, a good communicator and we wish him all the best."

Mackay, 36, is hoping to make the most of his chance in the hotseat and said: "I'm proud and honoured to have this opportunity," he said. "I am caretaker manager for the time being, but have been told I can apply for the job.

"I wasn't sitting here waiting for Aidy to get the bullet. I don't think you can ever predict a time when you will end up in a job. I'm confident I can do a good job."

Simpson insists Boothroyd's severance package was far less than the reported £600,000, and will not be paying a huge salary to the next boss.

Other candidates are being invited to apply for the job, and Simpson added: "We are looking for someone who is pragmatic and has an eye for players in the lower Leagues."

Kenny Jackett, John Ward and Ian Holloway are amongst those thought to be interested in the position.

Jackett, who played for the club from 1980 until 1990, has impressed by leading Millwall to third place in League One this term, while Ward, another ex-player, was sacked by Carlisle yesterday but would represent an experienced hand after 17 years in management.

Holloway, meanwhile, was relegated with Leicester last season but had previously impressed in the second tier while in charge of QPR and Plymouth.

Watford's current financial difficulties, however, mean they may find it tough to make the post attractive. The hard-up club, valued at just less than £6million, have been actively searching for new investment for the last 12 months, with Simpson admitting key players like Tommy Smith and John-Joe O'Toole will have to be sold in January if no new funds are forthcoming.

Watford are in the final year of their 'parachute' payments since relegation from the Premier League in 2007, while the ongoing redevelopment of Vicarage Road in on hold.

Boothroyd was known to be frustrated at the lack of investment in the first-team squad last summer and at the absence of a transfer budget.

Simpson and chief executive Mark Ashton settled on the decision to show Boothroyd the door after watching the Hornets lose 4-3 at home to Blackpool on Saturday, a game they had led three times.

Boothroyd took over in March 2005 and led the club to promotion 14 months later.

However, Watford were relegated after one season playing in the top flight and failed to regain their Premier League status after they were beaten in last year's play-offs by Hull City.