Watford will compete in the U18 and U21 Premier League comps next season.
The Hornets confirmed this morning they have been successful in their attempt to upgrade their Academy from Category Three to Two.
"It's very much the right time for this club to be moving into Category Two of the Elite Player Performance Plan," Watford chief executive Scott Duxbury told the club's website.
"The first-class academy structure already in place when we arrived at the club three years ago has continued to go from strength to strength and the recent grading bears this out."