The Nuggets picked up Watson's (hamstring) $4.36 million team option for 2025-26 on Thursday, Bennett Durando of The Denver Post reports.
Watson is officially on the books for Denver for two more seasons after averaging 6.7 points, 3.2 rebounds, 1.1 assists and 1.1 blocks in 18.6 minutes across 80 appearances during his second NBA campaign in 2023-24. He'll likely serve as one of the Nuggets' top big men off the bench during the upcoming season.