A formal announcement from Clemson University is expected to come down Friday evening, after the Board of Trustees has been informed of the news.
Watkins was charged with possession of a controlled substance and simple possession of marijuana, both misdemeanors, in early May.
Clemson head coach Dabo Swinney elected to postpone any announcement concerning Watkins' punishment until the beginning of preseason camp.
Still, multiple times Swinney said Watkins was "hitting a home run" in how he was handling the situation.
Sources tell CUTigers Swinney considered suspending Watkins for more games, but the two game suspension was more fitting given how Watkins handled the situation.
Watkins caught 82 passes for 1,219 yards and 12 touchdowns last year in being named the ACC Freshman of the Year and is widely considered one of the top wide outs in the country.
He was also named the ACC's Preseason Player of the Year.