The deal will see the Watford-based company invest a significant sum into Watford FC, with the Beko logo will be emblazoned across the player's shirts for the next two seasons.
Graham Simpson, Watford FC chairman, said: "Beko has strong community links and understand its corporate social responsibilities within the Watford area, and it is a very good match for this football club."
Watford's previous deal with Loans.co.uk as the official shirt sponsor ended at the end of this season. However, the football club's commercial team said it had brought forward the Beko deal as early as possible ahead of the new season.
Clayton Witter, Beko managing director, said: "Watford has an outstanding reputation as a true family club, with magnificent support within the community. Beko is based in Watford, literally around the corner from Vicarage Road.
"We have a real desire to enhance our support within the local community and there is already a real support for Watford within the company."
At the end of the 2008/09 season both parties will have an option to extend the deal to a further third year. The deal follows Watford FC's relegation from the Barclays Premier League at the end of the this season to the Championship League.