You need to assume that $Y$ is normal (see the counterexample at the end), and you need to assume that the characteristic is $0$, or else Frobenius morphisms are counterexamples. Also, assume that $f$ is quasi-finite (the reduction to the case that $f$ is quasi-finite is at the end). First of all, using Nagata compactification, $Z$ embeds as a dense open in a proper variety; replace $Z$ by this proper target. To prove a set map is an algebraic morphism, there is no harm in making the target bigger.
Consider the product morphism $$(f,\psi):X\to Y\times Z.$$ By your hypothesis, $(f,\psi)$ is quasi-finite. Thus, by Grothendieck's form of Zariski's Main Theorem, there exists a factorization of $(f,\psi)$, $$X\hookrightarrow \overline{X}\xrightarrow{\phi} Y\times Z,$$ where $X$ is a dense open in $\overline{X}$, and where $\phi$ is finite. (There is a wonderful discussion of the various forms on pp. 288-289 of Mumford's "The Red Book of Varieties and Schemes".) The image $\overline{\Gamma}$ of $\phi$ is a closed subvariety of $Y\times Z$.
Since $f$ is surjective, the projection $$\text{pr}_Y:\overline{\Gamma}\to Y,$$ is surjective. Since $Z$ is proper, $\text{pr}_Y$ is proper. By your hypothesis, $\text{pr}_Y$ is generically bijective on points. In characteristic $0$ (where there is no Frobenius), that is enough to conclude that $\text{pr}_Y$ is birational. Denote by $U$ the maximal open subset of $Y$ over which $\text{pr}_Y$ has finite fibers. Since $Y$ is normal, by Zariski's Main Theorem, $U$ is also the maximal open subset of $Y$ over which $\text{pr}_Y$ is an isomorphsm. The goal is to prove that $U$ equals all of $Y$. Then the inverse isomorphism composed with projection to $X$ is a morphism $Y\to Z$ (by construction), and that morphism agrees with $\psi'$ setwise.
Okay, the "correct way" to finish the argument is to directly use the Going-Down Theorem to deduce that the morphism from $X$ to $\text{pr}_Y^{-1}(Y)$ is already surjective. Here is a variation that is a bit more geometric. Let $y$ be a point of $Y$, and let $F$ be the fiber of $\text{pr}_Y$ over this point. (By the way, another form of Zariski's Main Theorem, the Connectedness Theorem says that the fiber $F$ is connected.)
By hypothesis, there is a point $(y,z)$ of $F$ that is the image of a point $x$ of $X$. Let $(y,z')$ be any point of $F$. Let $C$ be an irreducible curve in $\overline{\Gamma}$ that contains $(y,z')$ and that also contains the image $(y_0,z_0)$ of a point $x_0$ of $X$ that maps into $U$ (this exists by that result in Mumford's "Abelian Varieties" that we discussed before). Form the image $D$ in $Y$ of the irreducible curve $C$. Define $\widetilde{C}$ to be the closure in $\overline{\Gamma}$ of $\text{pr}_Y^{-1}(D\cap U)$, and then normalize $D$ and $\widetilde{C}$ for good measure. By construction, $\widetilde{C}$ contains the (normalization of) $C$. But the image of $\widetilde{C}$ also contains $(y,z)$ by the Going-Down Theorem applied to $X\to Y$. I am using Grothendieck's form of ZMT one more time for the original quasi-finite morphism $f$ to apply the Going-Down Theorem here.
Finally, since $C$ intersects $\text{pr}_Y^{-1}(U)$, both $\widetilde{C}\cap \text{pr}_Y^{-1}(U)$ and $D\cap U$ are dense opens in $\widetilde{C}$, resp. $D$. Thus the restriction, $$\text{pr}_Y:\widetilde{C}\to D,$$ is birational. A birational finite morphism between normal curves is an isomorphism. In particular, the fiber over $y$ consists of one point. Therefore, $z$ equals $z'$, i.e., the fiber $F$ is a single point. So every point $y$ of $Y$ is in $U$. Technically we did not need to make this argument passing to curves $C$ and $D$, but I find it a more geometric way to understand the commutative algebra.
Counterexample in the Non-Normal Case. If you drop the hypothesis that $Y$ is normal, there are counterexamples. Begin with $Y$ a nodal plane curve. Let $\nu:Z\to Y$ be a normalization. Let $p$ be one of the two points of $Z$ over the node of $Y$. Let $X$ be the open complement in $Z$ of $\{p\}$. Let $f$ be the restriction of $\nu$ to $X$. Let $\psi:X\to Z$ be the open immersion. Then $\psi'$ is not a morphism.
Second Edit: Reduction to the Quasi-Finite Case I just realized that we can reduce the general case to the quasi-finite case. For every point $x$ of $X$, choosing an open affine neighborhood of $X$, embedding this in some $\mathbb{P}^N$ and then intersecting with hyperplanes, there exists a locally closed subvariety $V_x \subset X$ that contains $x$ and such that the restriction, $$f:V_x\to Y,$$ is quasi-finite and dominant, and the image contains $y=f(x)$. Since $Y$ is Noetherian, there will be finitely many such locally closed subvarieties $V_1, \dots , V_r$ such that for the disjoint union $V = V_1\sqcup \dots \sqcup V_r$, the induced morphism to $Y$ is surjective, $$f_V : V \to Y.$$ Now replace $X$ by $V$, replace $f$ by $f_V$, and replace $\psi$ by the restriction of $\psi$ to $V$. Nothing in the argument above required that $X$ is irreducible.