Watt has been a huge disappointment since he was brought to the club by Kenny Jackett back in early 2006. He has made just four appearances in that time and not featured for the Swans since a 1-1 draw with Blackpool back in December 2006.
Last season he was sent on loan to Inverness Caledonian Thistle but that worked equally as badly and his season there was restricted to just one appearance – a 3-1 victory back in August.
Labelled in some quarters as "the new John Terry" when he arrived at the Liberty, Watt arrived with a Chelsea pedigree but never lived up to any expectations that Swansea had of him.
Speaking at the time, manager Kenny Jackett said "Steve is a quality player, strong in the air and in the tackle
"In fact, his all-round game is very good and I'm delighted to add him to my squad."