The 25 year-old former winger left Crewe in August 2007 for Spainish side Real Sociedad in a £300k deal but only made 7 appearances.
Vaughan linked up with Chris Coleman who was then at the time manager of second division club. Coleman left Sociedad in January after a string of poor results and it seemed only a matter of time before Vaughan moved back to England.
The Tangerines have signed Vaughan for a reduced fee of £200k and the Welsh International has signed a two year-deal with the Bloomfield Road club with an option of another year.