Watson leaves his position as assistant manager of Vanarama National League leaders Macclesfield Town to take the role, writes Tom Feaheny.
Watson who knows the North-East well said going for the Gateshead manager's job was an easy decision.
This is his first managerial job as he look to get a side who are sixteenth in the table up the league.
"I am proud to be in this position,the North-East of England is somewhere that I have a massive affinity with, I saw the opportunity to take this and I am delighted to be given this role," said Watson.
"I'm being honest, I want success, I am positive, I believe this team can mount a challenge, this team is strong and clinical."
"Belief is going to be key for this group, I want people to come here, we know we have to entertain and get positive results, it is a winning cycle, I think I can bring."
Watson left Macclesfield on good terms and said he enjoyed his time there.
"I am ambitious in wanting to take on a managers job but I leave Macclesfield knowing I did a good job, they were all so supportive of me and I wish John and everyone there all the best."
His first game in charge sees Gateshead take on Buxton in the FA Cup fourth qualifying round and Watson says the aim of the match is simple.
"I know Buxton really well, they are a good outfit, this is a first chance to get my stamp on the team, Saturday is very important though in terms of getting into the next round, that's the aim."
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