The Bluebirds have emerged as automatic promotion contenders after making several signings in the summer.
Also shortlisted were Swansea's Brendan Rodgers, Coventry's Aidy Boothroyd and the Portsmouth boss Steve Cotterill.
Brian McDermott, the Reading coach, complained the equalising goal his side conceded in Wednesday night's 1-1 draw with Cardiff should not have stood.
Andy D'Urso, the referee, awarded a goal after his assistant said Jay Bothroyd's long-range shot had crossed the line after crashing down off the crossbar. McDermott disagreed.
"I knew straight away that it wasn't over the line and it took me just three seconds after the game to view it again and confirm it wasn't over. It was a really poor call," he said.
"He guessed. He could not be sure the ball was over the line. It was not a goal. It was as simple as that. The linesman killed the referee and he will be embarrassed when he sees it again.
Watford have said the rugby union side Saracens have ended their groundshare with them at Vicarage Road.
The Sarries have played at Watford's ground since 1997, but intend to move to the Barnet Copthall Stadium from next summer.
"We originally presented Saracens with a September 3 deadline to make a decision about their future after June 2011. Despite this deadline not being met, I believe we have shown understanding, empathy and no little patience in wanting to conclude this matter in the best interest of both parties," said the Hornets chairman Graham Taylor.
"With Saracens now seriously pursuing another option we feel the time is right to provide some definition and clarity. We are very comfortable with our decision and now we want to push forward with the plans we have been starting to formulate.
"The development of Vicarage Road into a stadium of which we can all be proud remains our key focus."