it is the third time the versatile Davies has signed for Gary Johnson after linking up with him at Yeovil and Peterborough.
Johnson told the official Cobblers website: "I obviously know Arron very well and he knows me very well. He is a quality footballer who can play anywhere across the midfield, out wide on either wing or central and even up front if we need him to."
The Town boss will now step up his goalkeeper search after Chris Dunn confirmed that he is leaving for Championship side Coventry City.