The highly rated Magpies premiership assistant got the nod just ahead of Gold Coast assistant coach Ken Hinkley.
Carlton's Alan Richardson was also part of the final three interviews.
An official announcement will be made at Etihad Stadium at 11am, allowing Watters two days to help shape the Saints' trade plans before tomorrow's 2pm deadline.
Read more at the Herald Sun ...
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Watters wins top job at St Kilda
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