21-year-old Monaghan born McCarey had been due to stay with The Saddlers for the remainder of the season but following a self inflicted hand injury to current first choice Carl Ikeme, Wolves are short on cover for new first choice Dorus De Vries and have invoked their recall clause which comes onto force on Thursday.
In an online statement the club confirm "with De Vries now with the opportunity to complete the season as first choice keeper Wolves have also recalled Aaron McCarey from his loan spell with Walsall."
With only youth 'keepers Liam Roberts and Richard Jones available The Saddlers will hope to secure an immediate replacement before Saturday's trip to Hartlepool United.