Arthur believes Watson has under-achieved in the Test format, and has revealed his top-most mission from now onwards is to make sure the all rounder gets good success in the longest version of the game.
The Australian vice-captain has been the most influential figure at the World Twenty20 in Sri Lanka so far and produced his second man-of-the-match performance in the rain-affected win over the West Indies on Saturday night.
Watson has just two Test centuries to his name and 18 half centuries in 35 Test matches, and Arthur feels it is important for him to start getting more runs in the longer format of the game.
"Without a doubt, he can [be as good as Kallis]. Watto is such an incredible all-rounder," the Sydney Morning Herald quoted Arthur, as saying.
"He has a major impact on any game he plays in. What he needs to do is score hundreds. Jacques Kallis' record in Test cricket is sublime, especially with the bat," he added.
"Watto is aware he needs to convert a lot more starts. He's only got two Test hundreds which for a player of his talent is probably below-par and he would acknowledge that," he said.
Arthur added: "One of my roles with Jacques was to try to get an extra 10 per cent out of him because there was an extra 10 per cent lying dormant somewhere. I think he's done that, and it's very, very similar with Watto."
"I would have failed as coach of Australia if Watto doesn't end up with 10 Test hundreds, he's that good. We've got to push him and give him the direction. He should be getting at least two Test hundreds a year, comfortably," he concluded. (ANI)