Taylor enjoyed success during two stints as Watford manager
Graham Taylor's role as temporary Watford chairman has become a permanent position for the club's former manager.
Taylor, 65, will take the role on a non-executive basis so he can continue to concentrate on other interests.
The ex-England boss became interim chairman in December when incumbent Jimmy Russo stepped down.
Taylor told the club's website: "I would like to see if I can play my part in the continuing work to re-establish stability at Watford."
He added: "I'm not coming back to run Watford Football Club.
"I have great confidence in the executive staff and they have my full support."
Taylor has a long-standing affinity with the Hornets, after becoming manager in 1977 he led them from the fourth-tier of English football to the top-flight.
He returned in the 1990s and took the club into the Premier League for one season.
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