Watson returns to his former club on a season-long loan, having battled for the number one shirt at York in the 2024/25 season.
He ultimately found game time limited with Harrison Male impressing, making seven appearances in the campaign and keeping three clean sheets.
Watson conceded eight goals in those seven games, and was used in the cup matches under manager Adam Hinshelwood.
The 29-year-old from York returns to the club where he has predominantly played for in his career, having initially joined Scunthorpe on a short-term loan in 2015 from Hull City.
That move was made permanent in 2017 and Watson would go on to represent the Iron for five years, appearing 85 times.
After leaving Scunthorpe in 2022, Watson was used as a back-up option at both Doncaster Rovers and Wrexham, before his move to York materialised in 2023.
Watson will compete for the number one shirt at the National League newcomers with another former City shot-stopper in the form of Maison Campbell.
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