The 19-year-old, who has previously played for Barnsley, has signed a 12-month contract with the club holding a further option of
The Northern Ireland youth international had been on trial with Town and links up again with boss Micky Mellon after the pair were at Barnsley together.
“I’m absolutely delighted to come to Shrewsbury,” McKnight told the club’s official site.
“It’s a club that I’ve been with over the past few months on trial and I’m just happy to get things done.
“I know the gaffer well from when he was at Barnsley
“I got released there and I was able to get in contact with him and he offered me the chance come down.
“I know what he’s about and what he expects from me as a player and what he wants from the team, and I feel I fit that mould.
“Looking at the team last year and how positive everything was, it’s a great environment for me to go into and challenge myself.
“I’d describe myself as a defensive-minded midfield player who gets on the ball and gets stuff happening and comes up with the occasional goal as well.”