Just two days after playing his 100th NRL game against Cronulla on Sunday, Watson caught the Knights by surprise with his decision to reject a slightly more lucrative three-year contract extension worth around $350,000 a season to re-join his former club.

He broke the news to O'Brien yesterday morning before calling his teammates to a meeting on their day off to inform them. O'Brien said he had been hopeful Watson would stay but with the decision made, "we'll just get on with it".

"It did surprised me a bit and it's disappointing," O'Brien told the Newcastle Herald. "We've made no secret that we wanted Connor to stay. But he's decided his future now and that's his call.

"What we won't be doing is letting it derail our season this year. We'll be professional about it and just get on with it.

"Three weeks ago, we were celebrating extending the two Safs [Saifitis] and re-signing Hymel [Hunt] and Kurt [Mann]. But the reality is in our game, you are not going to keep all of them and Connor won't be the last one who leaves at some stage.

"When you look at our squad, we have Kurt and Randy [Chris Randall] who can play that utility role and we've obviously got the scope to bring in someone from outside now to strengthen us."

Watson, who won the NRL's prestigious Ken Stephen Medal award last year for his outstanding work in the community, is one of the club's most popular players among teammates and fans.

But in four seasons at the Knights after joining the club from the Roosters in 2018, he hasn't been able to hold down a regular starting spot under either former coach Nathan Brown or O'Brien.

He has regularly been used as a bench "Mr Fix-it".

Over the past two seasons, he has come off the bench in 17 of his 26 games in the top grade under O'Brien.

News of his defection angered local fans, who took to social media to slam the club for failing to retain him. It came after club legend Andrew Johns last week called on the Knights to do whatever it takes to re-sign him.

But CEO Phil Gardner denied the club botched Watson's retention, saying the club had done everything it could to keep him.

"Our offer was for a longer period and to the best of our knowledge, it was also superior financially," Gardner said.

"It was a very good offer and I think the market has proved that's the case because we understand he hasn't been offered any more anywhere else.

"He has clearly made a a decision purely based on what he believes is best for his footy career over the next few seasons. He wants to pursue a different avenue for his football and we wish him all the best."

Gardner said he is not surprised fans are disappointed.

"Look, Connor's been great for us and we love him and the fans love him too but it's as much about him as a person as it is about his football," he said.

"He's a tremendous person and I'm sorry to see him go. But at the end of the day, we made him a really good offer and he's decided not to take it. We can't force him to do anything."

Roosters coach Trent Robinson said: "Connor is an exciting player and a skilled performer across a number of positions. He is also a really good person."

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