The 26-year-old midfielder joined the Hornets from Manchester City in 2019 and made 81 appearances, scoring eight goals during his time at Vicarage Road.
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His breakthrough campaign came in 2023/24, when he scored just 33 seconds into the season opener against Queens Park Rangers.
He also found the net in Watford’s 2-0 win over Luton Town in February 2025.
Dele-Bashiru featured twice at the start of last season before spending the remainder of the campaign on loan at Turkish club Genclerbirligi.
Meanwhile, Watford forward Jorge Hurtado has joined Colombian side Deportes Tolima on a season-long loan, with the club holding an option to buy.