The team has yet to make an announcement on the signing and financial terms were not disclosed in the report.
Watson figures to backup George Hill, who signed a five-year and $40 million deal last summer, at point guard.
GOLLIVER: NBA free agency 2013: Latest rumors Watson has been a primarily a backup over his six seasons in the league, and was Deron Williams' backup last season with the Brooklyn Nets. He averaged 6.8 points and two assists in 80 games last season. His minutes and scoring average increased during the team's run through the playoff.