The former Oldham and Huddersfield winger made 47 appearances for City in his year at Boothferry Park, scoring just once.
Meanwhile chairman Adam Pearson says that progress is being made on new signings.
He said: "We're close to bringing a left-back and a striker into the squad and hopefully we'll be able to make an announcement very soon.
"The signings we have already brought in are good and if we can add the other two we are after then we'll be looking very strong indeed."