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Speaking to the Walsall Advertiser, Smith said; "We had a number of good options but Neil really stood out.
"He ticks all the right boxes in terms of age, room for further development and experience at this level and above.
"He is an extremely driven young man who wants to be successful and these are the characteristics that we are looking for.
"Neil will compete with Craig MacGillivray for a first-team place and they will both push each other on, which is exactly the kind of competition that we want."