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The Tigers head coach is ready to announce on his departure on Wednesday, despite giving Hull chiefs one last chance to persuade him to stay.
Silva is a free agent this summer after failing to keep Hull in the Premier League, which would have triggered an automatic 12-month extension to his £40,000-a-week deal.
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Despite being unable to prevent Hull from making an immediate return to the Championship, the 39-year-old is in demand for his impressive work at the KCOM Stadium.
Silva has no wish to head a promotion bid and is set to confirm his departure next week.
That will pave the way for talks with Watford, who are searching for a new head coach with current boss Walter Mazzarri leaving after Sunday’s final round of Premier League games.
Asked if the club can match his ambitions in the Championship, Silva said: “That’s not an easy question. It was a big challenge for us to keep the club up. Now I need to see what is the best solution for us as well.
“The chairman has shown an interest in keeping our staff but we will talk again next week.
“I’ve not had any other offers at this point but speculation is normal. It’s impossible for me to talk about other clubs because Hull City deserve all my respect.
“The chairman has shown an interest in keeping our staff but we will talk again next week”
Hull boss Marco Silva
“We have one more game to play and Watford have one more game to play as well. Until now nothing has happened.
“We’ve started talks (with the owners) and we will have one more meeting on Wednesday, then we will announce our decision.
“At the moment the club looks at what is best for the club and it is for me and for the players to see what that situation is.
“I need to talk a couple of times more with the chairman and we will see about the future.”
Hull’s fate was sealed with the heavy 4-0 defeat at relegation rivals Crystal Palace.
But Silva has earned praise for coming so close to guiding the Tigers to safety after they looked to be a lost cause when he replaced Mike Phelan in January.
The Tigers last game is at home to Tottenham and rampaging Harry Kane and Silva added: “It’s disappointing and frustrating because we didn’t achieve our goal.
“It’s been a hard week and we want to try to finish the season on a high. It will not be an easy moment for me or the players but we will try to do our best.”
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