Smalley, 30, becomes the ninth summer signing by new boss David Lynch and returns to Shawbridge eight years after leaving for Chorley.
Lynch told the club’s official website: “Securing Chris’s services for next season is testament to the hard work of our recruitment process.
“Chris was another of our top targets and it proves the club is moving in the right direction for a player of Chris’s experience to join us.
“Chris is not only a top defender but great technically, as well, and I can’t wait to start working with him.”
Experienced goalkeeper Jon Worsnop, defender Cole Lonsdale and midfielder Jack Lynch have all been added to the Blues’ squad in the past week.
Keep up-to-date with our exclusive email newsletters.
Subscribe