MADRID (XINHUA) - Valencia coach Javi Gracia will remain at the club for the time being, as it would cost him €3 million (S$4.7 million) if he chooses to leave now.

Gracia had been close to resigning from the club he only joined in the summer due to his frustration over the club's work in this summer's transfer window, which saw key first-team regulars such as Ferran Torres, Dani Parejo, Ezequiel Garay, Francis Coqueilin, Rodrigo Moreno and Cristiano Piccini all leave with nobody signed to replace them. A

Although Valencia have had a decent start to the campaign with two wins, two defeats and a draw to kick off the La Liga season, their 2-0 home defeat by Betis last Saturday highlighted the club's shortcomings.

According to the Spanish media, after the transfer window closed on Monday (Oct 5) with no new signings, Gracia sought to speak to the club's president Anil Murthy in order to inform club owner, Singaporean billionaire Peter Lim of his intention to resign.

The source also indicated that it was because Lim's promises regarding signings had not been fulfilled.

However, the 50-year-old was told that if he left the club of his own accord, he would have to pay €3 million in compensation.

Gracia had a two-hour meeting with Murthy on Wednesday but was unable to speak to Lim.

Murthy has insisted that the club, which failed to qualify for Europe last season, has full confidence in Gracia to get the best out of the squad.

Former Watford manager Gracia remains Valencia coach on Thursday morning, but for how long is still uncertain.