Thirty nine-year-old Edwards was appointed in May after leading Forest Green Rovers to promotion from League Two.
He succeeded former England boss Roy Hodgson and became the Hornets’ eighth permanent manager since 2018.
Former West Ham and West Brom boss BILIC had been out of management since leaving Chinese club Beijing Guoan.
His contract was canceled by mutual consent in January, after a year in charge, because he wanted to return to his family in Europe.
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