Watters, 19, joined Doncaster in the summer from step 8 side Ashford United.
He has previously played in the EVO-STIK League Premier Division for Grantham Town, scoring four times in 21 appearances.
Manager Lee Sinnott said: "Max is very impressive, he runs well with the ball and makes things happen. He has experience at this level with Grantham Town.
“He's positive, direct and has a nice touch for a big lad with a decent cross on him and a mean shot.
“He's the type of forward that asks defenders questions and the couple of times we have watched him he has been a real handful We're grateful to Grant McCaan and Cliff Byrne at Doncaster for allowing Max the opportunity to continue his development with us."
Meanwhile, Jonathan Margetts has returned to Boston United following his loan spell.
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