The 20-year-old previously spent time on loan to the Doonhamers from Sheffield United and now returns to Palmerston for season 2019/20.
Manager Allan Johnston told the club website: “We are delighted to bring Callum back to the club. He is a young defender who proved his quality when he was on loan last season and I don’t think it’s a coincidence that there was a dip in results once he left.”