Contract extensions for Albion's manager and two star players have been put on hold, because of the Falmer saga.

The cash-strapped Seagulls cannot commit themselves to updated deals for Mark McGhee, Leon Knight and Danny Cullip until the new stadium issue is resolved.

The public inquiry into the Seagulls' stadium plans, reopened by Deputy Primer Minister John Prescott so that seven alternative sites can be re-examined, does not kick-off again until January 11.

McGhee, Knight and Cullip are all out of contract at the end of the season, but the latest delay to the Falmer bid has put more financial pressure on Albion.

McGhee revealed: "The club is in a very difficult position because of the circumstances with the stadium.

"It's the same for myself. I would like to know what the future is going to be, but I appreciate the situation the club is in.

"We have all got to hold our breath. Once we know what is happening with the stadium then the club will speak to Leon and Danny and, I would like to think, myself."

Chris McPhee is back in the squad for the first time this season for tomorrow's trip to Watford.

McGhee watched the young front-runner in the reserves against Crawley on Tuesday, his first full match since breaking a bone in his foot.

"He looked fine," McGhee said. "I've just got to make a decision. At the very worst he will be on the bench."

McGhee has to choose between McPhee, Knight and stand-in striker Adam Virgo.

He also has a selection dilemma at leftback now that England under 21 international Dan Harding has recovered from a hamstring injury.

"He trained yesterday and came through okay," said McGhee. "Kerry Mayo did brilliantly at Leicester, so there is a decision to be made there."

Richard Carpenter is not quite ready to return to the squad. The midfielder continues his comeback from summer knee surgery in a friendly for the reserves against Leyton Orient next week.

McGhee admits he is not sure what to expect from his team or tomorrow's opponents.

"Watford have started better than people may have been thinking but probably not better than they were thinking, because they have some experience and decent ability," he said.

"They have a boy up front (Danny Webber) who seems to be on fire, which you need, but we have as much chance of beating them as being beaten.

"They are a bit like ourselves in that respect. We don't know if we are going to turn up as we did at Leicester or as we did say against Plymouth, although I suspect we are getting more consistent."