The attacking playmaker made 64 appearances and netted seven times in two seasons for the National League North side.
After being released by Telford, the 32-year-old drops down to the Southern Central Premier to join up with Mark Yates’ side.
It comes after Kieran Morris, Brad Birch and Charlie Price signed on at the War Memorial Athletic Ground – while the club also activated their 12-month option on defender Kristian Green earlier this month.
Suffolk-born Knights started his professional career with hometown club Ipswich Town before spending time on loan at Yeovil Town and later making a permanent switch to the Somerset club.
He has also had two stints with Kidderminster Harriers, alongside spells with Newport County, Solihull Moors and Tamworth – before he signed for Telford in the summer of 2018.
The attacker can operate across the forward line, at the head of a midfield diamond or out wide and offers experience and versatility to Yates’ squad.
His move to Stourbridge marks his return to the Black Country – as he is a personal trainer at Stourbridge-based Snap Fitness UK.