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Caleb joined the club in September 2023 on a short-term deal.
Operating primarily as an attacking midfielder, the 21 year old joins the club as a free agent having left Southampton at the end of last season.
Watts signed a professional contract in 2019 and made three Premier League appearances for the Saints, as well as his debut in the FA Cup against Shrewsbury Town.
He joined Crawley Town on loan in January 2022 but his time at the Red Devils was cut short after just 18 minutes of play following a hamstring injury which forced his return to Southampton. He then joined Morecambe for the 2022-23 season, making 30 appearances and scoring three goals.
Essex born Watts is also an Australian under-23 international, featuring for the 'Olyroos' at Tokyo 2020 in all three of their group stage matches.
Caleb wears no.17 and scored on his Grecians debut against Cheltenham, less than 24 hours after signing.
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