Briggs, 21, has found it hard to break into the Fulham first team since making his senior debut six years ago in May 2007 and has made just eight appearances in his Fulham career.
He has again found it difficult to dislodge John Arne Riise this season from the starting left-back slot and made four appearances for Bristol City in October on loan before returning to Craven Cottage.
It is understood Briggs will not be registered in time to make his Watford debut in Friday night's Championship clash away to Wolves, but will be eligible to play at home to Sheffield Wednesday on Tuesday.
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