The Falkirk born youngster who turns 20 tommorow has been a regular in the Wanderers Reserve team for the past two seasons since his transfer from Raith Rovers however he has been unable to make the step up to the first team due to a large amount of competition in the midfield area.
The Saltergate club will get the help of sponsership from local business to fund the Niven transfer as well as the imminent signing of former Derby County midfielder Matt O'Halloran.
Ex-Wanderers manager Roy McFarland, now in charge of the Third Division side said the two new additions would provide some welcome competition for places.
"The new signings will bring some welcome competition and provide essential cover." he said