The West Bromwich East MP and Labour deputy leader stressed the need for his party to focus on saving jobs by supporting Theresa May's crumbling administration rather than 'trying to bring the Government down'.
Mr Watson said: "What we want is a good deal. We want the Government to be in a position where they can craft a deal.
"Obviously it is our job to try and put our set of priorities to the Government.
"It does feel like the Government is in meltdown and the difficulty with that is that there are millions of families out there who need this deal to go through.
"Jobs are on the line, particularly in areas in the north and the Midlands where the manufacturing industry is most concerned about the customs union arrangements.
"It's not a question of Labour trying to bring the Government down, it's actually a question of Labour trying to help the Government get a good deal and try and stop the Government bringing itself down."
Labour sources have suggested the party would vote against the final Brexit deal unless it meets shadow Brexit secretary Sir Keir Starmer’s six tests on protection of jobs and rights.