
Pugh spent last season on loan with the Tulips, playing an important role in the club's promotion to the National League North.
The young midfielder came through the academy at Scunthorpe United and has also represented Hereford, Spennymoor Town and Scarborough Athletic. His experience at Step 2 level will be key as the club prepares for its first season in the National League North.
Everyone at Spalding United would like to welcome Tom back to the club and wish him success in his first season as a permanent Tulip.