"This has always been a family-orientated club and I am looking forward to being part of it again," said Hutchings.
"It's a great challenge but there is a nice blend of youth and experience here and I can't wait to get started.
"I give 100 per cent in everything I do and I jumped at the chance to come here. It's a mouth-watering prospect and it's great to have Martin O'Connor alongside me.
"He's an enthusiastic character, like myself, and hopefully together we will bring success to the club."
Hutchings has previously had spells in charge of Bradford City and Wigan Athletic, while more recently he had a brief spell as caretaker boss at Derby County.
The Saddlers were on the lookout for a new manager following the recent sacking of Jimmy Mullen, who was axed after a matter of months in charge at the Bescot Stadium.