Walder was devastated to have been released by Newcastle

The 28-year-old Walder, who featured for England Saxons in the Churchill Cup, was surprisingly released by the Falcons at the end of the season.

"Dave is an important addition to the squad, giving us experience and depth in the number 10 position," said Wasps rugby director Ian McGeechan.

Meanwhile, lock Simon Shaw has signed a two-year contract extension.

Shaw, who has 34 caps for England, will begin his 10th and testimonial season at the club in September.

It's a fresh start for me and I am looking forward to the new challenges that lie ahead Dave Walder

Walder made his Falcons debut in 1999 and went onto make 110 appearances for the club.

He has four England caps, the last coming against Wales in 2003, and was named on the bench for the Six Nations contest against Ireland this year.

However Newcastle rugby director Rob Andrew decided that Walder was no longer part of his plans with Jonny Wilkinson fit again and Toby Flood already on the books at Kingston Park.

The move stunned Walder, who said at the time: "It's hard to take."

Walder had interest from a number of clubs, including Welsh sides the Dragons and the Blues, but decided to stay in the Premiership.

"I am really excited about my move to Wasps. It's a fresh start for me and I am looking forward to the new challenges that lie ahead," said Walder.

"Wasps' set-up, in terms of conditioning and development of players, is second to none, and with their help I think I can improve as a player."