Dixon, who started his career at Notts County, has previously enjoyed spells with Boston United and Grantham Town.
Head coach Tom Shaw said: “Kyle joining us for the season ahead, I feel yet again, shows the pull and reputation of our football club.
"He had offers at the same level that were financially better, but at the point he is at in his career, he wants to be playing his football in the best environment he possibly can, to be in a position to flourish."
"Our training facilities, the ground, the pitch, the atmosphere created by the supporters are all a huge asset and will challenge anybody in and around this level of football.
"Along with the culture and provision we are looking to create on and off the pitch, this will hopefully give the players their best chance to perform."
"Kyle comes with a solid number of games at this level and above.
"He fits the profile of athletic players we are searching for and plays with good drive and energy.
"He is hungry to impress at this level next season and i think our way of working and style of play will really help him be at the top of his game."
"I think he is a midfield player who can affect a game with the amount of ground he covers and I will challenge him to go and and be a threat in the opposition penalty box.
"With his attributes and abilities he could definitely get some numbers to his name."
Starting his career at Notts County, the popular midfielder went out on loan to AFC Telford United having performed well in similar spells at Boston, but returned to his parent club before making the switch to Boston permanent.
From Boston, Dixon moved to Basford, where he spent the season, ending up on the losing side to Coalville in the play-off semi-finals.
He has also had spells with North Ferriby and Coalville Town.