Payne has been playing most recently with Evo-Stik Northern Premier League Premier Division side Ramsbottom United after starting the season with Rammy`s league rivals Salford City - a move he made in the summer after helping FC United of Manchester to promotion.
The tricky attacking winger worked under Pitmen boss Frank Sinclair at Colwyn Bay in 2013, scoring 4 goals in the final six games to help guide the club to safety.
The 26-year-old also spent a long spell with Trafford, facing the Pitmen in the FA Trophy back in 2012, and had scored 16 goals before them in the last campaign before a switch to FC United twelve months ago.
Sinclair was pleased to be able to be reunited with forward thinking player: “I’m delighted to be able to bring Shelton to the club. He played a huge part in helping to keep Colwyn Bay in this league when I was manager, scoring a number of important goals.
“This is a big chance for Shelton to show the ability he has and fulfil that potential. I’m looking forward to working with him again.”
Payne will go straight into the squad for tomorrow’s game against AFC Telford United at the New Bucks Head.