Watson will be leaving from Sydney today and is expected to arrive in India tonight, but he will be able to join the squad tomorrow only as the team is currently playing in the third Test here.
One of four suspended players, Watson, who returned home to Sydney for the birth of his son Will last Thursday, will come back after serving a one-Test ban for failing to submit a presentation to coach Mickey Arthur on how to improve his and the team's performance.
"Shane Watson will return to the tour of India and will fly out of Sydney tonight to join the Australian squad in India ahead of the fourth Test," Cricket Australia said in a brief statement.
Watson was originally expected to return home after the third Test and miss the fourth, but his dumping in the wake of 'homework-gate' hastened the 31-year-old's departure.
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His suspension, along with fellow team-mates James Pattinson, Usman Khawja and Mitchell Johnson, fuelled speculation about a possible rift with skipper Michael Clarke that was intensified by CA general manager Pat Howard's comment that Watson was a team player only "sometimes".
Before the start of the third Test, Clarke had made it clear that he would like to have his vice-captain for the final Test.
With Clarke battling back problems that prevented him from batting on Day 4 here, there might arise a situation where Watson would be handed the captaincy for the final Test.