The youngster is very highly rated and is one who scouts believe can go on to have a solid Premier League career.
Walters, who is only 19, had been at Arsenal’s academy since 2020 after joining from Tottenham.
Manager Rob Edwards said: “Reuell is another person we are delighted to bring into the club. He’s a really exciting signing – a dynamic, quick, talented young player.
“He’s had a brilliant upbringing at a couple of top clubs, and we are so pleased to get his move done.
“Pathway is very important to him. That is one of the reasons why he is leaving Arsenal. He had a number of inviting options, but we are so glad that he chose us and sees us as the right step to take on his journey now.
“He’s got brilliant support, great family. He’s got loads of ability and high potential.
“He can play in a number of positions – right-back, right centre-back, right wing-back – and he’d be able to do the middle as well. He’s got lots of strings to his bow.
“He’s a young player, so there is no pressure. But we see him as someone who could potentially make an impact this season and I really hope he does. We’re looking forward to getting to working with him.”
Reuell added: “I’m really excited by the challenge ahead. I think I resonate with all the club’s beliefs.
“I like the style of play, I get along with Rob really well and there are a few friendly faces from the past here as well.
“Zack Nelson and Axel Piesold were at Tottenham’s academy with me when I was younger. We’ve known each other from when we were young and have kept in contact the last few years, so some things just come back around.”
Asked about his goals are for the new season, he finished: “Just to get my head down and work.
“I haven’t played in the Championship before. It’s going to be my first real experience of first team football, so I just want to come in, improve the team, work my way up and see what goes from there.”