The 21-year-old Gloucester-born Lawrence was handed a two-and-a-half-year professional contract by the Robins in January 2015.
He made one substitute appearance for the first-team before being released by new manager Gary Johnson the following summer.
After a break from football, Lawrence appeared against a young Robins side for Tuffley Rovers in July, scoring twice in a 4-2 defeat for the Uhlsport Hellenic League Premier Division side at Seasons before signing for Hungerford Town in August.
Lawrence is a former Gloucester Primary Schools representative player, who appeared for Bishop’s Cleeve during his time in Cheltenham’s academy.
Lawrence will go into the squad for tomorrow’s trip to Hemel Hempstead Town.
City have also promoted youth team prospect and England Schoolboy international Noah Smerdon to the first-team for the remainder of the campaign.