Watford have reportedly told Everton that they have no hope of coaxing Marco Silva away from the club.
The Toffees saw an initial approach for the Portuguese boss turned down earlier this week, but tried their luck again on Wednesday having made Silva their number one choice to replace Ronald Koeman.
However, The Telegraph reports that Watford have once again refused Everton permission to speak to Silva, despite being offered £10m in compensation.
Silva does not have a release clause in his contract at Vicarage Road and the club's owners are adamant that he is going nowhere having only been appointed during the summer.
Everton are understood to be willing to double Silva's wages in a bid to lure him to Goodison Park, having been managerless for almost a month now.
Caretaker boss David Unsworth is once again expected to lead the team during Saturday's Premier League showdown with fellow strugglers Crystal Palace.
Barney Corkhill
