The 29-year-old, who joined the Hornets from Tottenham Hotspur in 2015, has penned a deal that will run until June 2022.
In total, the Frenchman has made 92 appearances for the Premier League club and has contributed with 10 goals.
This season, Capoue has had 17 outings in all competitions, 12 of which have been starts.
Watford are currently 10th in the table.
Restore Data
| Team | P | W | D | L | F | A | GD | PTS | |
| 1 | Sheffield UnitedSheff Utd | 21 | 14 | 5 | 2 | 30 | 11 | 19 | 45 |
| 2 | Leeds UnitedLeeds | 21 | 12 | 6 | 3 | 37 | 15 | 22 | 42 |
| 3 | Burnley | 21 | 11 | 8 | 2 | 26 | 8 | 18 | 41 |
| 4 | Sunderland | 21 | 11 | 7 | 3 | 32 | 17 | 15 | 40 |
| 5 | Blackburn RoversBlackburn | 20 | 11 | 4 | 5 | 25 | 17 | 8 | 37 |
| 6 | Middlesbrough | 21 | 10 | 4 | 7 | 35 | 25 | 10 | 34 |
| 7 | Watford | 20 | 10 | 4 | 6 | 29 | 26 | 3 | 34 |
| 8 | West Bromwich AlbionWest Brom | 21 | 7 | 11 | 3 | 24 | 16 | 8 | 32 |
| 9 | Sheffield WednesdaySheff Weds | 21 | 8 | 5 | 8 | 26 | 30 | -4 | 29 |
| 10 | Swansea CitySwansea | 21 | 7 | 6 | 8 | 23 | 22 | 1 | 27 |
| 11 | Bristol City | 21 | 6 | 9 | 6 | 26 | 26 | 0 | 27 |
| 12 | Norwich CityNorwich | 21 | 6 | 8 | 7 | 36 | 32 | 4 | 26 |
| 13 | Millwall | 20 | 6 | 7 | 7 | 20 | 18 | 2 | 25 |
| 14 | Derby CountyDerby | 21 | 6 | 6 | 9 | 26 | 26 | 0 | 24 |
| 15 | Coventry CityCoventry | 21 | 6 | 6 | 9 | 27 | 30 | -3 | 24 |
| 16 | Preston North EndPreston | 21 | 4 | 11 | 6 | 21 | 27 | -6 | 23 |
| 17 | Stoke CityStoke | 21 | 5 | 7 | 9 | 23 | 28 | -5 | 22 |
| 18 | Queens Park RangersQPR | 21 | 4 | 10 | 7 | 21 | 27 | -6 | 22 |
| 19 | Luton TownLuton | 21 | 6 | 4 | 11 | 23 | 37 | -14 | 22 |
| 20 | Oxford UnitedOxford Utd | 20 | 4 | 6 | 10 | 21 | 33 | -12 | 18 |
| 21 | Cardiff CityCardiff | 20 | 4 | 6 | 10 | 19 | 32 | -13 | 18 |
| 22 | Portsmouth | 19 | 3 | 8 | 8 | 21 | 34 | -13 | 17 |
| 23 | Plymouth ArgylePlymouth | 20 | 4 | 5 | 11 | 19 | 42 | -23 | 17 |
| 24 | Hull City | 21 | 3 | 7 | 11 | 19 | 30 | -11 | 16 |
| > Championship Full Table | |||||||||
