Former West Brom boss Steve Clarke appears to be biding his time before making his next move and Cellino's interest in Paul Clement ended when he was told the Real Madrid No 2 is on £2m-a-year salary at the Bernabeu.
And now Garcia has accepted Watford's offer to take over at Vicarage Road.
Leeds are on the lookout for a new boss after dismissing Dave Hockaday last week.
Hockaday's reign lasted just six games and was dismissed after the Capital One Cup defeat to local West Yorkshire rivals Bradford City.