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Ranieri was awarded the Premier League title in 2015-16 with Leicester City.
Watford is in talks with Claudio Ranieri, an Italian manager, about their next manager.
The 69 year-old would replace Xisco Munoz who was promoted with the Hornets last season, but was fired on Sunday after only 10 months.
Watford, who had seven Premier League points this season and was 14th in the table, was represented by Xisco Watford.
The 14th managerial shift by Watford's family, the Pozzos, since 2012, when they took control.
Ranieri will be returning to the English top flight, which he won in 2015-16 with Leicester City. He left Sampdoria's Serie A side in the summer.
He is a skilled manager with a lot of experience. Watford could be his 21st managerial club. He has won eight trophies during that time, including the 1998-1999 Italian Cup and 2004-05 Super Cup With Valencia as well as the Premier League title with Foxes.
Ranieri also served spells as Fulham and Chelsea manager.
Although he is highly respected at Leicester, he was fired in 2017. The club had suffered a string of poor results that saw them just one point above the relegation zone. There were 13 matches remaining in the 2016-17 season.
After Leicester, he spent a season in Nantes in the Premier League before returning to Fulham in 2018. Fulham fired him after he lasted only 106 days, with the club in danger of being relegated from the Premier League.
Spaniard Xisco was fired on Saturday by Leeds after a 1-0 loss. This is the first Premier League manager who has been fired this season.
Watford will host Liverpool in the next Premier League match on Saturday, 16 Oct.