Walsall-born Keates, who spent two previous spells with the Dragons both as a player and manager, has signed a deal that should see him stay at the Racecourse ground until at least the summer of 2021.
The former midfielder made more than 160 appearances as Wrexham's captain, making his debut during a 1-0 win over Cambridge United in August 2010, going on to lift the FA Trophy at Wembley Stadium in 2013, and was also part of the team that gathered a record 98 points and reached the National League Play-Offs three times.
Despite being given an opportunity to rebuild the team Dean endured a disappointing spell in charge of his hometown club last season, a campaign which saw the team relegated to the fourth tier of English football despite opening the year with an unbeaten run.
The Saddlers, who are now managed by former Bristol Rovers boss Darrell Clarke, had spent over a decade in League One and were forced to dismiss their hometown hero as the club looked to reset ahead of the 2019/20 campaign.
We would like to wish Dean, who made over 260 appearances over two spells in a Saddlers shirt, and his family all the best as they return to North Wales.