Watson's two-year contract is worth the veteran's minimum to be their backup point guard, a league source confirmed to ESPNNewYork.com. The deal will include a player option for the second year.
"We are very pleased to add a veteran with the savvy and experience of C.J. Watson to our roster," Nets general manager Billy King said in a statment. "C.J. has the ability to be productive in a variety of roles, and he will add quality and versatility to our backcourt rotation."
King said Friday one of his priorities was to add a veteran point guard to play behind starter Deron Williams.
Watson appeared in 49 games for Chicago last season, making 25 starts. He averaged 9.7 points and a career-high 4.1 assists in 23.7 minutes. As a starter, Watson posted averages of 11.3 points and 4.6 assists in 29.2 minutes per game.
The 6-foot-2 Watson started five of the Bulls' six playoff games last season and averaged 7.3 points and 5.5 assists in 27.3 minutes.
Information from The Associated Press was used in this report.