The Huddersfield Town midfielder will enjoy another loan spell away from the John Smith’s Stadium after time with both Pools and Bradford City last season.
Daly joined Pools under former boss Dave Challinor last summer and made a decent impression at the Suit Direct Stadium scoring seven times in all competitions during the first half of the campaign.
Daly’s form earned him a recall by the Terriers as clubs looked to take stock of their squads with COVID-19 cases rising over the winter period.
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But Daly would not return to Pools, instead joining Bradford on-loan for the remainder of the campaign where he would score once in just nine appearances under Mark Hughes.
Daly will now get the chance to prove his worth once more in League Two though as he joins Simon Weaver’s side for the season.
“It’s an exciting time for the club and that’s what convinced me to come here,” said Daly.
“Knowing what the Gaffer wants to achieve moving forward is something I want to be a part of.”
Perhaps one of Daly’s standout moments in a Pools shirt came against Harrogate when scoring the winner at the Suit Direct Stadium in October - something which attracted Sulphurites boss Weaver.
“Matty is a really aware footballer in terms of where the space is and where he can receive the ball in dangerous areas and then go and hurt teams,” said Weaver.
“He hurt us big time when he played for Hartlepool last year and is very capable of doing that to other teams.”