The midfielder missed last week’s dramatic win over Wolves due to illness after not training during the week after scoring in their win against Brentford.
That brought Gabriel Martinelli back into the starting lineup though Smith Rowe’s return causes Arteta somewhat of a selection headache.
The 21-year-old has scored four goals in his last seven games, taking his tally to 9 in 15 Premier League starts.
In the absence and later exit of Pierre-Emerick Aubameyang, Smith Rowe has emerged as Arsenal’s most prolific attacker and having him available in at least some capacity is a huge boost.
With top four rivals Manchester United and West Ham facing tough fixtures against Manchester City and Liverpool respectively, a win against a struggling Watford side could prove pivotal in the race to qualify for next season’s Champions League.