The 21 year old spent five months on loan at Plymouth last season, having had temporary spells with Cheltenham and Torquay earlier in his career.
"He's an exciting talent who I've watched many times for Wolves' reserves," said boss Dean Smith.
The Saddlers boss told the club website: "I also had him watched three or four times whilst he was on loan at Plymouth and I think that that run of games has really helped his development.
"He is a very promising youngster who will continue to develop and grow. He's a skilful player with genuine pace.
"He's a good addition and I'm looking forward to working with him."