Former Real Madrid, Inter and Leicester midfielder Esteban Cambiasso was reportedly Watford's first choice for the Hornets hot seat but the Argentine rejected the club's approach.
The 39-year-old was a prime target for the Premier League club and was the preferred option to newly-appointed manager Nigel Pearson.
Pearson officially took charge of Watford on Saturday after the club's hierarchy took the decision to fire former boss Quique Sanchez Flores after a 2-1 defeat to Southampton last weekend.
But according to Calciomercato, the Watford board targeted Cambiasso as the man to correct the club's recent slump which has seen them slide to the foot of the Premier League table.
The Champions League winner was supposedly highlighted for his language skills as he is fluent in Spanish, Italian and English.
However, despite Watford's desire to land him, Cambiasso turned down the offer but it is not yet known why he declined the managerial vacancy at Vicarage Road.
Cambiasso - who ironically played under Pearson at the King Power Stadium - has an impressive playing resumé, turning out for Real Madrid and Inter, but the determining factor in his decision could have been no previous managerial experience.
With the Argentine declining the chance, Pearson duly accepted and the former Leicester boss, who last managed in the Premier League in 2015, has a tough task to keep Watford in the top tier of English football.
Pearson is already the third person in the Vicarage Road dugout this season and takes control of a club six points adrift of safety with only one league win to their name.
That win came away at Norwich City, but since then they have lost three in four and recorded a goalless draw last time out against Crystal Palace.
The new manager has no time to ease himself into the role, first up for the former Foxes boss is a trip to runaway leaders Liverpool on Saturday. Welcome back Nigel - no wonder Cambiasso passed up the offer.
Source: 90min
