The 23-year-old scored 12 goals for the Seagulls last season before signing for Barrow, where he has been unable to stake a regular place in the starting line-up.
He replaces Jordan Bove who has returned to Oldham Athletic.
The manager has also urged supporters to get behind the team and says they can play a vital role in ensuring the club maintain their Conference North status.
Speaking at a Meet The Manager night at the club on Tuesday the new boss urged fans to have belief and encourage the players.
He told fans: “I can’t stress enough what an important role the supporters can play between now and the end of the season
“Confidence for a football player is prime. We are trying to instil that in the players, to believe in themselves and each other, and they need to feel the fans are backing them and also believe in them.
“Doubts on the terraces filters through to the players on the pitch and it is vital that we all stick together through bad times as well as good.
“Nothing happens overnight. It takes time to implement a change of mind set among the players and get them to adapt to new ideas, but we are getting there and the spirit in the dressing room has never been better.
“The return of Jay Ellison will only add to that group cohesion. He is really enthusiastic to be coming back and will be an asset off the pitch as well as on it with his work rate, experience and ability to score goals at this level.
“Like Mike Lea, who has been fantastic since he came back, he wants to play for the club and to help keep us in this division – and that is just the attitude we want.”
Vice-President John Martin says the club is backing the manager and following up on the manager’s comments suggests the slogan for fans for the rest of the season should be “Believe”.