Cobblers seal fifth summer signing as they snap up Milton Keynes midfielder Ryan Watson
The 25-year-old returns for a third spell with Town, having enjoyed two loan spells under Chris Wilder in 2014 and 2015.
He helped Milton Keynes win promotion from Sky Bet League Two on the final day of the season, but was then one of 10 players released by Paul Tisdale.
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Hide AdWatson began his career as a youth teamer at Everton, before signing on at Wigan Athletic and then joining Leicester City in the summer of 2013.
He made one League Cup appearance for the Foxes, and as well as playing for the Cobblers, he also had a short loan spell with Accrington Stanley.
Watson was released by Leicester in the summer of 2016, and signed for Barnet, making more than 50 appearances for the then league two side.
Last summer he signed for Milton Keynes, and made 18 starts and nine substitiute appearances for the Buckinghamshire side as they won promotion to league one.
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Hide AdOver the course of his two loan spells with the Cobblers, Watson made 11 starts and eight substitiute appearances, scoring one goal in a 3-2 Football League Trophy win over Colchester United.
He becomes the fifth signing of the summer following on from Matty Warburton, Joe Martin, Chris Lines and Harry Smith.