"Not many clubs I'd have looked forward to signing for, but Watford FC have always had a special place in my life, can't wait to get going again," Foster wrote on Twitter.
The 35-year-old spent seven years at the Hawthorns, making 223 appearances in all competitions, and was one of West Brom's better players in a dismal 2017/18 campaign which saw them finish bottom of the league table on 31 points.
Foster becomes Watford's sixth signing of the close-season, after midfielder Ken Sema joined from Swedish side Ostersunds on Thursday.
(Reporting By Arnab Paul in Bengaluru; Editing by Amlan Chakraborty)
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