Louza said: “I’m very happy to sign a new contract. I’m really happy here, and I’m looking forward to playing as many games as I can to help try and seal promotion to the Premier League.
“I’ve been working very hard on my recovery, in the gym and on the pitch. It’s not been easy, but now I’m back with the ball and my teammates which is really pleasing.
“It’s going to be great to get back on the pitch in front of the Watford supporters again, at Vicarage Road. Hopefully I will see them all soon.”