The 23-year-old comes in as the Saddlers' 11th signing of the summer.
He enjoyed a productive loan spell at Grimsby during the second half of last season and has also played for Bristol Rovers and Swindon.
"I’m delighted to get the deal done," said Menayese.
“Walsall is a big football club and they’ve got good ambition this year, especially the head coach.
“As soon as I spoke to him, I wanted to come and play football here.
“I’m an aggressive, athletic defender, I can play left side or right side, comfortable on the ball. I work hard and I give everything that I’ve got.”