The 32-year-old guard learnt his basketball with the Manchester Magic before spells in the BBL with Milton Keynes Lions and Manchester Giants.
Gill has spent the last four years with the Giants and was their top scorer in the BBL last season.
Now the 5ft 8in star, a former English Basketball League Player of the Year, has decided the time is right to return.
“I am really excited to see that Stefan is back where it all started for him,” said Magic coach Paul Middleton. “It’s a huge coup for the club to get his signature for the next couple of years.”
Gill said: “It’s a very nostalgic moment for me. I was proud to be a player here and I’m proud to be part of the club again. It’s a homecoming for me.
“The professionalism and the passion are a big draw for me. Emotionally and physically, I’m all in.”
In his first spell with the Magic, he helped the club win the National Cup in 2007 and then the treble of the National Cup, NBL Division 1 championship and NBL Division One play-off title in 2008.
He joins Jack Minister, Lee Goldsbrough, Kayin Darbey, Kaiyem Cleary and Michael Anumba in the Magic squad for the forthcoming NBL Division One campaign.
Middleton thinks Gill’s addition will be a big plus for youngsters like Cleary and Anumba.
“He has bags of experience to bring to our young team and I know he will relish the chance to help some of our young players grow over the next couple of years,” said Middleton. “Aside from his influence and leadership abilities, no-one can doubt Stefan’s abilities as a player still.
“Last year, he was the top scorer for the Giants in the BBL and I have no doubt that he will make a huge impact for us. He will give us an additional scoring threat from the perimeter which will give us another dimension to the way we play.”
Joe Forber, Magic’s chief executive, added: “Stefan learned his basketball as a Magic junior and senior, so he knows what the club is all about. He will be a very big asset on the floor and an excellent role model for all our young boys and girls.”