The discovery using ESO's Very Large Telescope (VLT), endorses a new technique that will let astronomers efficiently search for water on hundreds of worlds without the need for space-based telescopes.
Since the early 1990s scientists have found almost 1000 planets in orbit around other stars.
These so-called exoplanets are mostly much larger than the Earth and many are much closer to their stars than we are to the Sun, leading them to be described as 'hot Jupiters'.
The team studied the exoplanet HD 189733b, a world that orbits its star every 2.2 days and is heated to a temperature of over 1500 degrees Celsius.
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This movement causes a small shift in the lines of the stellar spectrum (known as the Doppler shift), which move back and forth with the wobble of the star.
The NetherlandsLeiden University-led team flipped the technique on its head by measuring the gravitational influence of the star on the planet, which is much larger, hurling the planet around its orbit at some 400,000 km per hour.
Despite the much larger velocity of the planet, it is nearly a thousand times fainter than the star, which makes detecting it very difficult.
The team were able to detect the spectral line of water in the exoplanet atmosphere by using the CRyogenic high-resolution InfraRed Echelle Spectrograph (CRIRES) instrument mounted on the VLT.
Using the same technique, scientists were recently able to find the simple molecule carbon monoxide (CO) in the atmosphere of the same planet, but this is the first time it has been used to identify a more complex molecule like water (H2O).
It also paves the way for future observations with the coming generation of large telescopes like the European Extremely Large Telescope (E-ELT) that will begin operations from its site in Chile in 2020.
The findings were presented at the RAS National Astronomy Meeting in St Andrews, Scotland.