The former Netherlands Under-21 star has made the decision to return to the Eredivisie ahead of the 2012-13 campaign
The Eindhoven side were in the market for a new goalkeeper after deciding to part company with Khalid Sinouh, and sporting director Marcel Brands feels the 28-year-old Waterman is the right man for PSV.
"PSV have two good goalkeepers, Przemyslaw Tyton and Boy Waterman, under contract for another long season," he said.
"Khalid Sinouh played a fine role in last season’s team, but we’ve made the decision to give Boy Waterman and our own talented youngster Nigel Bertrams an opportunity to show their skills between the posts."
Waterman came through the ranks of the Ajax youth academy, and enjoyed spells at Heerenveen, AZ, ADO Den Haag and De Graafschap before joining Aachen in the summer of 2011.
The goalkeeper was part of the Netherlands squad that won the Under-21 European Championship in 2007.