Watson admits the Spaniard's decision to stay at the club has left him far more confident about his former side's promotion chances.
Watson, who was born in North Shields and started his professional football career playing for the Magpies in 1990, was part of one of Newcastle's most revered teams, playing alongside the likes of David Ginola Tino Asprilla and Philippe Albert under Kevin Keegan, who brought the Magpies to within touching distance of the Premier League title in 1996.
Those days seemed further away than ever when the club was relegated to the Championship last season, but Watson believes that boss Rafael Benitez's decision to stay on Tyneside has helped to lift the mood, adding that he is optimistic about their chances of returning to the top flight.
And he admits that to be given the opportunity to be a part of it all would be a dream come true.
Watson told the Chronicle: “I would love to be part of the coaching team and getting the club where it should be.
“Obviously I am disappointed they have been relegated but I’m optimistic for them since the manager is staying.”
This summer will be crucial in rebuilding the playing squad and from there anything can happen with the Spaniard at the helm and some exciting young players coming through the ranks.