The 26-year-old keeper returns to Maesydre from Shifnal Town, after leaving in the summer and first appearing in the Welsh Premier with Newtown 10 years ago.
Welshpool had already obtain a dispensation from the FAW to complete the transfer before the January window following the departure of regular keeper Jack Cudworth to Rhyl.
"We would like to thank the Welsh Premier's administration team for their guidance and advice," says Pool secretary Liam Pritchard.
"Dispensation didn't have to be granted but we're glad they saw fit to do so in the interests of the game.
"A big thanks to John Deakin for granting this and to Tim Lane in the registrations department for going the extra mile to secure international clearance for Danny on New Year's Eve.