Watson has agreed a one-year deal at Layer Road with the option of a further 12 months.

The 30-year-old was a key member of Colchester's promotion winning side last season.

Watson told BBC Essex: "It's good to get it sorted out because we've been having talks since before the last game of the season."

He added: "I've really enjoyed my two years so far at Colchester and there is no doubt we've punched above our weight.

"The chairman is quite strict about not giving two-year contracts to players over 30 but I think I've got the next best thing which is a year and then an automatic further year if we stay up, and I don't see a problem with that."