Watford have staved off the threat of administration by paying back nearly £5m that had been owed by the club to their former chairman and vice-chairman.

Watford have been handed a lifeline to resolve their financial peril by former chairman Jimmy Russo.

Watford have moved to avoid entering administration by asking former chairman Jimmy Russo to suspend his demand for repayment of a £4.88m loan.

The chairman and board of directors of Watford have all resigned at the club’s parent company’s AGM tonight, according to reports.