Cathcart struggled with a hernia injury and featured in only 15 league games last season but new Watford manager Marco Silva, who replaced Walter Mazzarri last month, opted to tie down the long-term future of one of his most experience players.
Watford also signed midfielder Will Hughes from Championship side Derby County last weekend as Silva prepares his side before they host Liverpool in the opening league fixture at Vicarage Road on August 12.
(Reporting by Hardik Vyas in Bengaluru; editing by Amlan Chakraborty)
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