The front man, who joins Leon Mettam and Tom Denton in attack but can also play in midfield, featured for Shaw at previous clubs Sheffield FC and Shirebrook.
Ollerton-born Higginson began his career as a 13-year-old at Mansfield Town, making his first team debut in April 2009 as a 17-year-old.
He had loan spells at Glapwell, before leaving Stags in July 2011 to sign for Sheffield FC.
The 21-year-old also counts Grantham Town and Rainworth in his former clubs.
Shaw highlighted the player’s hunger as a reason for signing him for a third time.
“Conor is an exceptional talent who is always wanting to prove himself, a player with great ability and vision.”
“He has a lot of motivation and drive and I am pleased to have him with us.”
“He has worked with us at two different clubs and knows what we expect and what we are all about.”
“Having played at this level before and with his versatility will give us a lot of attacking options.”
Higginson is the club’s sixth signing, after Shaw re-signed Mettam, Denton and Phil Roe, and added Laurence Gaughan from Matlock Town and Josh Davies from Brigg Town.