He said: "I'm delighted to be back in this division. It didn't take me long to make my mind up and now I'm just looking forward to getting back to playing football once again."
The Stockport-born player - who has operated at both left-back and on the left wing - will make his return to the KC Stadium with his new side for the Carling Cup First Round game in the fourth week of August. He joins fellow ex-Tiger Matt Baker moving to the Racehorse Ground. The goalkeeper played a handful of games for City before joining Hereford a year prior to Holt's move to City in 2001.
Holt himself made a total of 35 starts and 26 substitute appearances for the Tigers since his £150,000 move from Oldham, preceded by a 12-game loan spell at Boothferry Park.