Capoue has been one of several Watford players to be linked with a move away from Vicarage Road following the Hornets’ relegation to the Championship.
Former Watford manager Gracia is keen to reunite with the French midfielder at Spanish La Liga club Valencia, but a transfer has not materialised yet.
As Capoue continues to be linked with a move to the Mestalla, Gracia has refused to comment on any move for the 32-year-old, insisting that it would be disrespectful to Watford.
“I prefer not to talk much about options or players who are not there“, Gracia was quoted as saying by Spanish outlet Plaza Deportiva.
“It is a lack of respect for his team, the player and our squad.“
However, the Valencia coach has stressed the need for the club to bring a new midfielder for the 2020/21 season.
“It is one of the positions that when I spoke with the president I have always [said] had to be reinforced“, the Spaniard said.
With Valencia facing financial constraints, it remains to be seen if they can strike a deal with Watford, who are said to be only keen on selling Capoue permanently.