The 18-year-old centre-back, believed to have cost in the region of £20,000, is an academy graduate at the Banks's Stadium who was offered his first professional contract by the Saddlers earlier this summer.
But he has instead opted for a move to Wolves, with Walsall watching his career with interest as they look to benefit from several performance related add-ons.
Saddlers chief executive Stefan Gamble said: "We offered Jamie a professional contract for the new season before any interest from Wolves was known.
"We were obviously very keen to secure the services of Jamie moving forward, but the player is free to sign for whoever he chooses and once such an approach has been made you have to be pragmatic to ensure that you protect your compensation rights accordingly.
"Following the recent approach, after negotiations, we have accepted what we feel is a good offer for Jamie that includes several performance based contingent sums triggered by future achievements. We would like to wish Jamie all the best in his future career."
