Appointed interim manager a month ago, Cleverly, the former midfielder of Manchester United and Everton among others, has been confirmed as fulltime manager.
In his seven Championship matches in charge, Watford have gained eight points with one win, five draws and one defeat.
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The Hornets have officially announced that Cleverly has been confirmed on the bench even if the details of his contract have not been communicated.
Cleverley was forced to retire from playing football last summer due to injury and immediately began his career as a coach starting with the Under 18 Watford team which he led to second place in the league and to two semi-finals in national cups.