22-year-old Bailey who signed for the Railwaymen back in 2005 was one of four players released at the end of the season.
Bailey made three apperances during his time at Gresty Road and was on loan at Blue Square side Weymouth towards the end of the season.
Bailey had a loan spell at Vic's back in 2005 but then as a striker since then he had loan spells at Hereford United, Southport, Lancaster City and Barrow.
Vic's boss Dino Maamria tied up the deal before he jetted of on his holiday and he told the Northwich Guardian "But it's a great signing - he's got great physical presence which is vital in this league."