The 29-year-old, who spent five seasons with Australian A-League side Adelaide United before turning out for Newcastle Jets last season, joins Bengaluru on a one-year deal, the club said in a release.
Watson, who fulfils the Asian player criteria, becomes the second foreigner to sign for Bengaluru after defender John Johnson penned a two-year extension at the end of last season.
The Australian said he was delighted with his move to Bengaluru.
"I've spoken to a few people and heard good things about the League. I've even had a word with former Bengaluru player Sean Rooney who had a lot of nice things to say about the club and I'm really looking forward to joining the team as soon as possible. I've been training with a local club here and keeping as fit as possible. There's a big AFC Cup game coming up and the sooner I get there, the better," said Watson, in a release.
Cameron hails from Melbourne and has also had appearances for the U-17 and U-20 sides of the Australian national team. Watson has made more than 200 appearances in the A-League and has also played in the Asian Football Confederations (FAC) Champions League with Adelaide in 2012.
Coach Albert Roca felt that Watson's addition would be vital to the team's plans for the season.
"Cameron is a good player in a position that's very important to the team. He has a good background playing in Australia which I think is an impressive League in terms of standard and his presence would help us grow," said the Spaniard.
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