The 18-year-old looks set to follow in the footsteps of his brother having already represented England Schools in the No.9 jersey.
Sharks Under-21 manager James Wade rates the young halfback very highly, describing his style of play as similar to that of veteran Scottish scrum-half and captain Bryan Redpath.
"After watching him several times throughout last season, I am convinced he will be a great asset to Sale Sharks in the future," said Wade.
"He is keen to work hard and knows he will be competing against two excellent young scrum halves at the club, Joe Bedford and Richard Wigglesworth."
Simpson-Daniel signs up with Sharks who will be moving to their new stadium at Edgeley Park for the new season.