Watt has impressed as the Under 18s captain so far this season as well as featuring regularly for Scott Sellars' Under 23s side.
The 17 year old has now put pen to paper on a two-and-a-half year contract, his first as a professional.
"It’s brilliant - it’s a relief and I can now focus on my football, not that I haven’t been focussing," Watt said.
"It just means that there are no distractions or anything like that, and I can carry on playing how I’ve been playing.
"It’s not a big distraction but it plays on the back of your mind about when it’s going to get finished and finalised etc. It’s great to get it all out of the way.
"It’s been brilliant so far this season, I’ve really enjoyed it! It’s not been the best season so far this season regarding the ‘18s - we’ve had quite a mixed bag of results really.
"The Under 18s had a draw at the weekend and it was a bit of a mad game so hopefully the lads can go on a run of results now.
"Monday’s win with the ‘23s, 4-2, that was a brilliant result so hopefully we can go on a good run of results there as well.
"Personally I think I’ve been playing well and I’d like to carry on playing well and then kick on."
Watt, who has represented Scotland at Under 18s level, now has aspirations to continue his development at the club.
Ultimately he has the first team in his sights, but for now I would like to establish himself in the Under 23s team.
He continued, "I’ve enjoyed being the captain for the Under 18s and I’ve tried to take that leadership to the Under 23s as well - I’m settling in now and I’m getting to know the lads more and what each individual needs at certain times.
"I feel like I’m settling in and I’d like to take my leadership qualities up to the ‘23s.
"It’s a challenge for me but it’s certainly something I enjoy. I feel like it’s a key part of my game as well - if I talk to players that I’m playing with, it makes my game easier as well.
"My targets for now is to just play in the ‘23s team - I want to keep developing and keep improving as a player.
"Ultimately my aim is to be in the first team at Wolves in the Premier League, whether that happens or not is to be seen.
"It’s only down to me at the end of the day, everything’s in place at the club - if I continue to work hard then hopefully it will happen."
