Manchester United are stepping up their efforts to persuade Zinedine Zidane to become their next manager, according to reports.
The club held an emergency board meeting after the loss at Vicarage Road and have decided that Solskjaer's time is up.
The Guardian writes that United are now working on an announcement which would refer to the Norwegian departing by mutual consent.
Darren Fletcher, the technical director, is in line to take over on an interim basis as United search for a permanent successor to Solskjaer.
According to The Times, United have made Zidane their number one target to take the reins.
The Frenchman has been out of work since leaving Real Madrid at the end of last season.
United are willing to increase their financial offer to Zidane in a bid to tempt him to join.
The 49-year-old won two La Liga titles and three Champions Leagues across two spells in the dugout at the Estadio Santiago Bernabeu.
He is untested outside of that environment, though, and an inability to speak fluent English also raises question marks.
Cristiano Ronaldo would no doubt welcome the arrival of Zidane, under whom he enjoyed some of the best years of his career at Madrid.
Both are currently in work, however, and that could complicate matters for United, who will also need to stump up £7.5m in severance pay for Solskjaer.
The 4-1 thrashing by Watford made it four defeats in United's last five Premier League matches.
They have taken just four points from the last 21 available and are almost certainly out of the title race already.
Having finally decided to dispense of Solskjaer, United now move on to the more difficult task of sourcing a replacement.
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