Saddlers snap up rising star Morris - Watch the interview

The 20-year-old has made a big impression since returning to the Saddlers on loan from Wrexham last month.

Morris has started every game of the club's current seven game unbeaten run, scoring two goals. And the new deal marks a stunning turnaround for a player who had until recently remained only on the fringes of the first team.

Despite scoring the winner in the second game of the season, a 2-1 Capital One Cup victory at Southend, Morris did not feature from October until being loaned out to Wrexham in January.

There he scored four goals and played in the Red Dragons FA Trophy Final defeat to North Ferriby United at Wembley, before being called back to the Banks's.

He becomes the second Saddlers youth team product to commit his future to the club. Left-back Rico Henry, 17, has also put pen to paper on a new deal.

Boss Dean Smith is also close to agreeing a deal to keep defender and vice captain Paul Downing, while discussions with top scorer Tom Bradshaw – contracted for another year – are set to extend into the summer.

There has been no change to the stalemate involving keeper Richard O'Donnell, who is yet to confirm whether he will accept the Saddlers offer of a new two-year deal.

It has been claimed the Saddlers will receive only £75,000 following Watford and former striker Troy Deeney's promotion to the Premier League.

When Deeney moved from the Banks's to Vicarage Road in 2010, it was reported his former club would get £150,000 as part of the deal, if he fired the Hornets into the top flight.

But sources close to Watford now claim they will actually get only half that amount, with the other half paid only if the Golden Boys go on to avoid relegation next season.