Former Hereford manager Richard O'Kelly is returning to Walsall as assistant to Dean Smith.
O'Kelly was in charge at Edgar Street for three months but could not prevent the Bulls from suffering relegation to the Blue Square Bet Premier and turned down the chance of a longer stay.
He also rejected overtures from League One new-boys Crawley where he would have been reunited with Sean O'Driscoll.
The 55-year-old former Saddlers midfielder is familiar with the current squad as he spent time on Smith's backroom staff last season.
"I'm delighted to have secured my first choice and I'm delighted that Richard sees Walsall as his first choice," Smith told the club's official website.
"He's a real football man with passion and enthusiasm. He is an excellent coach and he'll be a valuable asset here."