Lee told the Walsall official website: "I have not seen Vinny in action for a while, but I have received glowing reports from our contacts in Spain.
"He is a player that I worked with briefly during my time at Wolves. He has a great left foot and likes to get stuck into the action and make things happen.
"He knows what the game is all about in this country and has the experience and know-how to help drive us forward.
"The deal has taken a little longer than we expected to conclude but I am delighted to finally have Vinny on board."
The 32-year-old, former Spurs favourite spent over five years with Las Palmas before joining Seville in the summer.