The duo have followed Alex McLeish in pledging their futures to the St Andrews outfit after Birmingham's manager finally signed a new deal earlier this month.
Both men have played an integral part in City winning promotion from the Championship and establishing themselves in the Premier League.
Andy Watson insists the duo were happy to sign new deals to keep them at the club.
"First and foremost, everything revolves around Alex and once the club came to his agreement on his contract, then we could move forward together," said McLeish's right-hand man.
"Myself and Dave were delighted the owners looked at our contracts.
"I think that was a recognition of the work we are all trying to do here and what we have done as a group over the past couple of years.
"We came back up from the Championship and are trying to get established as a Premier League side, as difficult as that is, and will continue to work hard to achieve that."
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