The 17-year-old, who was coming towards the end of his two-year scholarship with Man City, had his contract terminated by mutual consent at the end of last month.
Wilson said: "Dominic is a very talented individual. He's still very young but we feel he's got what it takes to make it, should he work hard.
"Although he is very young and certainly one for the future, there's nothing wrong with keeping our eye on young talent - and young Dominic certainly has talent.
"He's certainly worth keeping an eye on. He's impressed with the Under-21s and Under-18s in recent weeks.
"He's a player that the youth coaches have identified and I think the club has backed them and their judgement.
"He's coming from a terrific background in Manchester City and let's hope we can make the most of the learning curve he has already been on there.
"It's important to keep an eye on the future as well as the present and be able to look forward.
"The signing of McHale is not something I have engineered, the credit really should go to the youth team. They can identify some good players and they think this is another one."