The 26-year-old, who spent a successful spell with the Pilgrims in 2010-2011, returns to The Jakemans Stadium following the release of veteran stopper Paul Bastock.
Haystead established himself as the Pilgrims’ number one in the early weeks of 2011 and his ever-present league run was only ended by a freak injury when he sustained ankle ligament damage by tripping over his dog’s toy and falling downstairs.
In total, Haystead kept seven clean sheets in 15 Blue Square Bet North outings for the Pilgrims.
He will be the Pilgrims’ number one stopper in 2012-2013 once more, with 22-year-old Ricky Drury providing goalkeeping cover.