The 26-year-old has been heavily linked with a move to the Premier League, with all three promoted clubs reportedly interested, but has now committed his future to the Hornets
The 26-year-old had been heavily linked with a move away from Vicarage Road during the transfer window, with Premier League new boys Leicester City, QPR and Burnley all reportedly interested in acquiring his signature.
However, Deeney has now put an end to the rumours by agreeing fresh terms on a contract that runs until 2018.
"[Watford] are delighted to confirm that club captain Troy Deeney has committed himself further to Watford FC by today signing a new four-year contract," read a statement on the club's official website.
"The 26-year-old striker feels that he can realise his Premier League ambitions with the Hornets - a view endorsed by senior club officials and, without doubt, all Watford supporters."
Deeney has scored 62 goals in 138 starts for Watford.