The Moroccan international, who left St. James’ Park earlier this month, has signed a deal which will keep him at Vicarage Road until the end of the current season, with the Hornets retaining an option to extend his stay into next term.
Lazaar joined United from Palermo in August 2016, but despite being part of the squad which won the Championship in 2017, he found first team opportunities hard to come by on Tyneside.
The 29-year-old made a total of ten appearances in black and white, and also featured for Benevento, Cosenza and Sheffield United while out on loan in recent seasons.
He joins ex-Magpie Rob Elliot in the Hornets' squad, with the Republic of Ireland international having linked up with Xisco Munoz’s men last month.
Lazaar could make his debut for Watford in their home game against Bristol City on Saturday afternoon.