After incorrect speculation that Mackay had resigned from Watford (it's thought he actually threatened to resign) the Hornets official website issued the following statement.
WATFORD FC can today (Thursday) confirm the club has granted permission for Malky Mackay to speak to Cardiff City following their official approach to the Hornets.
Owner Laurence Bassini has now spoken with the board and Mackay himself, and with the Scotsman signalling his desire to speak to the Bluebirds, the club has reluctantly agreed to the approach from the Welsh side.
Chairman Graham Taylor said: "We have reluctantly agreed to allow Malky to speak to Cardiff City.
"The owner spoke with the board members and following Malky's request to speak to Cardiff, we have granted him permission."
Following on from that Cardiff City have now confirmed that talks have begun with Mackay. The Cardiff official website says:
Cardiff City Football Club can confirm that talks are underway with Malky Mackay to become our new manager. The talks begin following permission was granted this afternoon by Watford FC following our approach.
The club will not be making any further comment at this time, other than to thank Watford FC for theirprofessionalism and assistance in this matter. An update on progress will follow in due course.
Excellent news. After the near miss of Alan Shearer, to appoint Mackay would be an excellent move.