According to The Athletic journalist Phil Hay, Leeds United will appoint the Spaniard as their next head coach.
Gracia comes in with Premier League experience, he led Watford to safety in the 2018/19 season while leading the club to their first FA Cup Final in 35 years. Since then he has gone on to coach Valencia and more recently Al Sadd. The 52-year-old will initially join till the end of the season.
Leeds have been without a coach since Jesse Marsch was sacked earlier this month. The American was in charge at Elland Road for over a year, but a poor run of just two wins in 17 games led to his dismissal. Michael Skubala was appointed as interim and was in charge of the last three games.
Leeds sit in 19th place in the Premier League with 15 games remaining. They face Southampton in their next fixture this weekend.
