The 22-year-old attacker joined the Hornets in August 2016 from Spanish La Liga side Granada in a record deal of around £12.5 million.
After failing to impress - amid several injury and disciplinary issues - in his debut campaign scoring once in 19 league games, the young striker was sent on loan to Malaga for more experience and a chance to secure more playing time.
On his return from the loan spell, the forward has impressed scoring three goals in 15 appearances amid several dazzling displays.
And on Thursday, the Vicarage Road outfit announced that the Nigeria international has been rewarded for his recent form with a new deal.
“This is a just reward for Isaac's continued hard work and application this season,” Chairman & CEO Scott Duxbury told club website.
“We look forward to seeing him develop further over the coming years.”
Success will hope to continue the form when Watford take on Leicester City on Saturday as they look to bounce back to winning ways after a three-game winless run
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