"With no reserve team fixtures scheduled until well into the New Year, it would be beneficial for Stefan to go out and play regularly over Christmas," Lee told the official Walsall website.
"He has been unlucky since he has been here and I would have thought the opportunity to play regular competitive matches would appeal to him.
"As for young Fryatt, he needs to see what playing first-team football is all about.
"I think he would do well. He is a natural goalscorer and it would be interesting to see whether he could find the net in what is a struggling team.
"He is not quite ready for our first team just yet, so this move would be good experience for him."