Dixon, a 21-year-old right-back, joins Walsall on a two-year deal with a club option for a further year, ending a ten-year association with Everton that began in their academy. He made three senior appearances for the Merseyside club, including his Premier League debut against Tottenham Hotspur, and spent the second half of last season on loan in League One with Stockport County.
He becomes Lee Grant's 12th signing of a busy summer at Walsall, arriving days after the club's new boss began his reign with a 1-0 EFL Cup win away at Championship side Bristol City.
"I grew up not too far from here in Stafford/Wolverhampton so it feels like a trip down memory lane in some ways, but when the gaffer rang me I was sold instantly," Dixon told the Walsall website.
"He gave me his plan, his philosophy and his style of play over many conversations and they were nothing but positive things to hear — the way he spoke and sees the game sparked my interest from the off."
Back on Merseyside, Davies has taken up Everton's offer to train with the Under-21s while he continues his search for a club. The 28-year-old has been a free agent since leaving Sheffield United at the end of last season and is using the arrangement to build match fitness ahead of the 2026-27 campaign.
"Academy graduate Tom Davies has taken up an offer by Everton to train with the Blues' Under-21s while he looks for a new club," Everton said in a statement. "The 28-year-old midfielder is a free agent after leaving Sheffield United at the end of last season and was keen to use his experience to support the Under-21s while building fitness for the 2026/27 campaign."
Davies joined Everton's academy in 2009 at the age of 11 and made his senior debut in 2016 aged 17, going on to make 179 appearances for the club before leaving in 2023. He became Everton's youngest-ever captain in a 2018 Carabao Cup tie, wearing the armband at just 20 years and 60 days old — a record that still stands.