Manager Billy Heath says the return of the player is a key move for the National League club, writes Tom Feaheny.
Speaking to the club's website Heath spoke about why this was such an important deal to get done.
"The main thing is Dion knows everything about the club, what we are all about, that was a big part of the assessment for bringing him back here."
"He brings a lot of quality as well, he has looked sharp immediately and he will bring more competition and that is exactly what we need to keep them on their toes."
The addition is after Kevin Roberts their club captain departed the club to fellow National League club Wrexham and Heath admitted that while it was tough to see him leave, he understood his reasons for moving.
"Kevin goes with our best wishes, Wrexham have looked at him before, he wants full-time football, we didn't want to lose him, he was a very good player for us but we could not offer him that, we have to move on."
Heath's side next face his old club North Ferriby United on Monday night a game he is looking forward to.
"It will be nice to go back, I have great memories there, it's another game where we want to perform and make the steps for getting back to full fitness."