"It has been a great pleasure working with him because he is a genuinely honest man who brings great integrity to his work.
"Ray will also be remembered at Vicarage Road for taking Watford to two major cup semi-finals in three seasons.
"However, we have recently seen a slump in form at a key point in our season, with just one point being gained from our last four home matches in the Championship.
"In fact the team has recorded just 4 victories in 24 league matches since the beginning of November 2004.
"Given that we are currently 15th in the Championship table and just four points above the relegation zone, the Board of Directors are united in feeling that now is an appropriate time to act and make a change.
"The two-week break in Championship fixtures provides a good opportunity for the club to have a new manager in place before we travel to Turf Moor to face Burnley on Saturday April 2 and the search for a new manager has already begun."