Taylor, 26 had been at Bramall Lane for the past three seasons where due to injuries made just 40 appearances after making his debut in a 0-0 draw at Middlesbrough which was shown live on Sky TV in August 2009.
He was released this summer by the Blades and had recently been training with Brentford but failed to earn a full contract but has now been snapped up by Walsall on a non-contract basis and is expected to make his debut against Mark Hughes Queens Park Rangers side in the League Cup.