McAllister, 20, was spared the axe after impressing in the second half of the season but the Owls have released midfielders Ronnie Wallwork and Burton O'Brien, veteran defender Lee Bullen and reserve team goalkeeper Rob Burch.

Laws said: "Sean deserves his opportunity because he has showed great promise when coming into the side at a difficult time.

"He may not be the tallest player but he makes up for that in many other ways."

Laws confirmed that he wants to sign winger Frank Songo'o, who is set to be released by Portsmouth after returning from a loan spell with the Owls, but also admitted that his wages could be a problem.

"Financially, it is still tight and a budget has been set that I have to adhere to," said Laws. "We all know we have to work within the current parameters, until things change, but I have still got room to bring in two or three new players."

With strikers Francis Jeffers and Akpo Sodje both due back from long-term injuries next season, Laws is not expected to join the chase for Chelsea striker Ben Sahar who scored three goals in 12 appearances on loan.

It is also unlikely that Polish international striker Bartosz Slusarski will be returning after his loan spell from West Bromwich Albion.

Laws still has to decide whether to pursue Sunderland's Graham Kavanagh or QPR's Adam Bolder, the duo also having spent time on loan at Hillsborough last season.

New deals have been offered to youngsters Luke Boden, Liam McMenamin, Richard O'Donnell, Arron Jameson and Sam Liversidge but first-year professionals James Kay, Jason Bradley and David McClements have been released.

"For every positive there's a negative and it's sad that players have to be released," said Laws. "But these players deserve the chance to find first team football elsewhere – which is something that we could not guarantee."

The Owls are still awaiting any written offers of fresh investment although Lancashire-based businessman Geoff Sheard maintains that his consortium are serious in their desire to take control of the club. Former Boston United chairman Jon Sotnick is leading a rival consortium.

Sheard has appointed accountants Grant Thornton to complete due diligence and has held talks about buying the 30 per cent stake in the club owned by former chairman Dave Allen, former director Keith Addy and director Geoff Hulley.

Meanwhile, the Owls have confirmed full details of their pre-season schedule.

Following a five-day tour of Holland which includes games against Haarlem on July 15 and Stormvogels Telstar on July 17, the Owls will visit Stocksbridge on July 23, Bury on July 26, Chesterfield on July 29 and Sheffield FC on July 30.

The only pre-season friendly at Hillsborough is against Premier League side Wigan Athletic on Saturday August 2 – a week before the big kick-off.