The 27-year-old has put pen-to-paper to become Graham Coughlan’s fifth new signing of the summer – having previous played under the United boss at Bristol Rovers.
Kelly has spent the last two seasons with the Iron in National League North – but has now moved south in the county as the Pilgrims transition to full-time football.
He becomes the fifth new arrival – following hot-on-the-heels of goalkeeper Rhys Lovett, fellow defenders Jordan Cropper and Ben Grist and attacking midfielder Liam Waldock.
Kelly’s arrival compensates for the loss of Cameron Green, who has turned down United’s offer of a new deal to seek pastures new.
With fellow full-back Jai Rowe seeing his move to Scottish Championship side Raith Rovers announced at the weekend, both players move on with the club’s thanks and best wishes for the future.