Deeney has scored nine times in 29 matches this season, taking his total to 37 across nearly four Premier League seasons.
The 30-year-old striker has yet to earn a cap for England, with the likes of Harry Kane, Marcus Rashford, Jamie Vardy and Callum Wilson playing striker for the Three Lions over the last year.
But Gracia thinks Deeney is better than all of them and should not be overlooked by Gareth Southgate and England any longer.
"There are good English players in that position, but in my opinion Troy is the best one," he said.
"He's in a very good moment now, but it's not my decision and I always try to be respectful with the national team."
A match against Arsenal in the Premier League looms, as Watford
"He handled it very well, you have to have that personality and he knows
"It was an important moment for the team and club and he managed really well, scoring the goal and doing something really special for the team.
"In my opinion, he always shows the right attitude, sometimes he likes to speak and say different things, but he always shows a very good attitude and he's
"Sometimes he can say some words like 'cojones' or