Formerly with Gainsborough Trinity, Brigg Town and Bottesford Town, Nichol can play in midfield or as a striker and becomes the latest player to commit his future to the Whites.
On the acquisition, manager Sam Wilkinson told the club`s website: "I’m pleased that Josh has committed to us for the season.
"He’s another very good signing and someone who is very hungry to achieve something next season.
"Josh has had two previous spells with the club. I tried to sign him at the start of last season but failed. I then tried again during the season but by then he’d picked up a bad injury forcing him to miss most of the season.
"He even played a few games with the serious injury which says a lot about the character of the lad.
"He is another winner and someone who gives everything and will run through brick walls for the club.
"He’s an athlete and has real quality. He is also another character for the dressing room, which is always key at this level.
"He has struggled with the commitment in the past and that’s the only reason he hasn’t playing at our level regularly. Now that’s all sorted it means Lincoln United have got a real asset to add to the squad".
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