He will have responsibility for all football operations at Swansea, with a "particular focus on player recruitment".

Watson emerged as a target for the Championship club in April.

"In any business, it is rare to find someone who is universally praised for their character and capabilities," said Swansea chairman Andy Coleman.

"Paul is one of those few people. He is an incredibly talented individual with tremendous football knowledge, and Swansea City needs football people making key football decisions.

"Paul's arrival immediately strengthens the club, and I look forward to working with him and providing him with the resources to make a positive impact at Swansea City."

Swansea have not had a sporting director since Mark Allen left the role in April 2022, though they brought in Josh Marsh as head of football operations in June 2022.

Swansea say Watson will work closely with new head coach Michael Duff, Coleman and Marsh and that he will be part of the club's senior management team.

The Championship club have been criticised for their work in recent transfer windows, particularly after they failed to sign a player last January.

Then head coach Russell Martin, who last week left Swansea to take over at Southampton, said at the time the club needed to change its approach in the transfer market.

Two of Swansea's US-based majority shareholders, Jason Levien and Jake Silverstein, then apologised for the failure to add to the playing staff during the mid-season window.

Luton, who won promotion to the Premier League last month via the play-offs, have impressed with their transfer strategy in recent years.