The Australian actress has been cast as Evelyn, the leader of the Factionless in Insurgent and Allegiant, which will be split into two separate films.
The 45-year-old Oscar nominated actress is the latest star to join the already impressive cast of the Divergent film franchise.
According to the Hollywood Reporter Watts will play Evelyn in Insurgent, which is scheduled for release next year. Evelyn also features in Allegiant, the third and final book in the Veronica Roth series that will be separated into two separate films, due out in 2016 and 2017.
Watts joins fellow newcomer Octavia Spence, who will play Johanna, the leader of the Amity faction. Shailene Woodley, Theo James, Ansel Elgort, Kate Winslet and Miles Teller are all expected reprise their roles from the first movie.
German filmmaker Robert Schwentke will be directing 'Insurgent,' taking over from Neil Burger, from a screenplay written by Brian Duffield and Akiva Goldsman.