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Jim Jefferies told Killie's official website: "He came down to train with us and I saw enough to want me to commit to a contract. He's a player for the future and, hopefully, he will develop."
O'Leary, who has represented the Republic of Ireland at Under-17 level, joined Aberdeen in 2003 but only managed to pick up two first-team appearances. He was offered a new contract last season by Jimmy Calderwood, but Ryan made it clear to the Dons management that he wished to leave Pittodrie, citing personal reasons for the decision.
It is believed that O'Leary was to be used as a makeweight in the potential transfer of Kris Boyd to the Dons, but Killie were prepared to wait for the youngster to be released at the end of his contract this month.