Thompson, 19, was released by the League One club without making a first team appearance, though he has had loan spells at Marine and Cammell Laird.
He said: “I have really been impressed by Paul Quinn and his vision of the future at this Club. I am really looking forward to joining the other lads and cannot wait to start playing again.”
Manager Quinn added: “We’ve been speaking to Bailey for a number of weeks and we are delighted, despite him having offers from several other clubs, that he has chosen to join us. He is ambitious and hungry and fits with what we are working towards at the Club.”
Keep up-to-date with our exclusive email newsletters.
Subscribe