Byrne, 26, was previously with Shaw Lane and played against the Yellows twice last season.
He said: “I had a long chat with the gaffer – he’s been after me for a couple of seasons now.
“When we spoke about the upcoming season and the role I’d have in the team, he really sold it to me.
“I knew it was a good club anyway but talking to Cardy really sold me the dream.
“When I spoke to Cardy, he told me a lot of the players from last season were staying on and that to me was a really strong team.
“Hopefully the lads will be stronger for the experience of the play-offs and we can push on that one step further this year.”
Byrne’s signing follows the news that Tony McMillan, David Raven, Josh Amis and Jack Dunn had agreed deals to stay.
Manager Paul Carden has also signed a one-year contract extension.