Watkins and the Wizards agreed to a two-way contract Wednesday.
The Wizards previously declined Watkins' $2.5 million player option, but there was mutual interest in a reunion. During the 2025-26 regular season, Watkins averaged 7.4 points, 3.9 rebounds, 1.3 assists and 1.1 steals in 20.6 minutes per contest.