We present a new eye-tracking and target designation device based on a contact lens incorporating a pair of vertical-cavity surface-emitting lasers (VCSELs). We describe the operating principle, the manufacturing process and characterize the impact of the VCSELs encapsulation on their optical properties. We then describe how such device can be incorporated into an eye-wear or a visual augmented system. We compare two different detection set-ups, the first using a camera and the second a position sensitive device, both illustrating different laser beam detection modes. We analyze their performances in terms of angular accuracy, speed, compactness, manufacturability, compared to current conventional eye-tracking systems. We emphasize how the use of two VCSELs and the control of their orientation during the encapsulation can simplify their integration in host systems and improve the gaze detection performance. Finally, we describe various embodiments and discuss potential improvements that can be expected in future systems.