Watson was appointed on an interim basis in early 2023 and oversaw wins over Ireland, United Arab Emirates and Oman during that year’s World Cup Qualifier and victory in the T20 World Cup Europe Qualifier.
His position was formalised in 2024 before the Scots narrowly missed out on the super eights stage at the T20 World Cup.
Cricket Scotland head of performance Steve Snell thanked Watson and commented: “He is well liked by the players, has made a positive impact in many areas and has enjoyed some memorable moments with the squad during his time as head coach.
“With no fixtures until March 2026 and with Doug being based overseas, it is the right time to ensure that our coaching provision reflects what the needs of the squad and the organisation will be in the coming year and beyond.”
Cricket Scotland chief executive Trudy Lindblade echoed the gratitude towards Watson and the need to plan for next year, saying: “It became clear that a change was needed.”