Nicklaus will play as one of the two commissioner exemptions if he is not among the top 76 players on the Champions Tour's point list. He is currently 82nd, and is scheduled to play in next week's U.S. Senior Open in Toledo, Ohio.
The 21st Senior Players Championship will be played at the Nicklaus-designed TPC of Michigan course just outside Detroit from July 10-13. It is one of five majors on the Champions Tour.
Stewart Ginn is the defending champion.
Nicklaus won the 1990 Senior Players Championship with a tournament-record 27-under-par 261 at the Dearborn Country Club. He will be making his 12th appearance.
Watson, who led the U.S. Open last week after an opening round 65, has won four events on the Champions Tour. At the Senior Players Championship, he finished tied for eighth in 2001 and 18th in 2000.
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