The youngster, who joined Wolves at the age of 16 following time at Blackburn Rovers and Preston North End, rose through the ranks at Molineux to make his first-team debut last season.
After signing professional terms in November 2017, Watt’s impressive form for the under-23s caught the attention of Nuno Espirito Santo, who handed the midfielder a start in last season’s Carabao Cup victory over Sheffield Wednesday.
Following that appearance, the 19-year-old went on to captain Wolves’ under-23s on occasions and performed consistently during their promotion-winning campaign last term.
Watt’s consistency has also earned him international recognition for three separate Scotland youth groups, up to under-21 level, most recently captaining the under-19s in their Euro 2019 qualifiers in March.
So far this season, the midfielder has featured in the under-23’ draw with Everton and victory over Blackburn Rovers, and will hope to feature against Leicester City on Friday night.
On the news, head of Academy Scott Sellars said: “We’re pleased to have tied a talented young player down to the club as we can now give Elliot more time with us to develop his game.
“Elliot is still young, he’s only 19-year-old and is still developing, but we’ve been very pleased with what he had shown throughout the time he has been with us at the Academy.
“The next step for Elliot will be taking that move away from the club on loan to gain league experience, which we feel will be really beneficial to him in the future.
“For a lot of the young players we have here at Wolves, the aim is to get them out on loan so they can gain this experience, however, the most important thing is that the player is tied down to the club, so they can go out on loan and work hard away from Wolves, while knowing their future is safe and secure.
“Now everything is settled with Elliot, he can move forwards with his development and focus on football and his learning, and we look forward to his progression.”
