The Spaniard came in after a run of Watford managers failed to stay in the post longer than a season, but has guided them to a great start to the Premier League campaign.
Sitting in 10th position with 15 points from a possible 30, Gracia's position at the helm of the 'Hornets' seems secure. However, his current deal is due to expire at the end of the season.
Despite the apparent urgency for that to happen, Gracia himself distanced himself from the topic: "I don't like to speak about that. I'm not concerned, I prefer to be focused on the game. I think it's the best for me, the club, for everybody. We will see what happens in the future.
"I said many times I am grateful here, from the first day. I am happy here. We will see in the future if I can stay [longer] here. In this moment, I don't need a new contract to do my best.
"I can feel the love of the club, the supporters, the players, the workers. I feel really well here, but I don't know what they can think in different moments.
"The manager always depends on the results. It's not a different situation now."