Laws, who is currently in talks with Wednesday about his future, is on a shortlist of candidates to replace Adie Boothroyd at Vicarage Road.

Nottingham Forest are also monitoring the situation and could yet make an official approach for his services if under-pressure manager Colin Calderwood is sacked.

Former Forest defender Laws, 47, joined the Owls two years ago and has won admiration for keeping the club in the Championship against a backdrop of financial pressures and cost-cutting measures.

Watford, who were relegated from the Premier League two seasons ago, parted company with Bradford-born manager Boothroyd at the start of the month and have slipped into the relegation zone after five consecutive league defeats.

Although former Scottish international Malky Mackay is in caretaker charge, other names in the frame include Chelsea reserve team coach Brendan Rodgers, former Hornets' midfielder Andy Hessenthaler, now managing non-league Dover, and Millwall's Kenny Jackett.

Mackay has been told that he will be in charge for the next two games against Queens Park Rangers and Bristol City with Watford seeking to make a permanent appointment before the game against Doncaster Rovers on November 29.

Laws refused to comment on the Watford speculation last night but confirmed that his desire for a new deal at Hillsborough had been on the agenda at a board meeting earlier this week.

"We discussed many factors at the meeting including players, contractual situations, my own future, and the way forward," he said. "We have opened talks about my situation and that is really all there is to say at this stage."

The fact that nothing has been resolved in relation to Laws's future remains a cause of concern to Wednesday supporters.

His deal is due to expire in the summer – at which point he would be able to walk away as a free agent – but the Owls may struggle to improve his existing terms due to debts of £26m and the apparent collapse of a proposed takeover deal.

On-the-field, the team's form has dipped in recent weeks, with just four points taken from the last 18 available, but they are still mid-table in the Championship and closer to the play-off spots than the relegation zone.

If Laws quits it would be a major blow to the Owls who have failed to mount a genuine push for promotion to the Premier League since being relegated eight years ago. Assistant-manager Russ Wilcox is also seeking a new deal.

Defender Tommy Spurr, meanwhile, is the latest injury doubt for the Owls ahead of this weekend's game with Coventry City. Spurr suffered a dead leg in last weekend's defeat at Derby County.

Laws is awaiting the results of a scan on striker Akpo Sodje who picked up a hamstring injury at Pride Park but winger Etienne Esajas is likely to be available after shaking off an Achilles strain.