Huddersfield are keen to win the race for Paterson's signature with a host of clubs thought to be vying for his services.
The dynamic winger is regarded as one of the best talents outside the top two divisions and he impressed last season for Walsall, scoring 13 goals for the League One outfit.
Huddersfield boss Mark Robins is a huge admirer of Paterson and sees him as someone who could help the side become a major force in the Championship next season.
It is understood that Walsall have turned down Huddersfield's initial offer for Paterson with the club valuing the 21-year-old extremely highly as they view him as their most prized asset.
Paterson is entering the final year of his contract at the Banks's Stadium and his suitors believe they may be able to land the player for a bargain price.