29-year-old Lowe who had one year left on his contract at Crewe and only said last week he was going to fight for a place in the starting XI has rejoined his former club Chester City.
The Liverpool-born midfielder has penned a two-year deal at the Deva and becomes City's fifth signing of the season.
Blues manager Simon Davies told the Chester Chronicle "He will be good for us. He has a bubbly personality and on the field when he is on the ball his play is exceptional."