Mahon made 144 appearances for Tranmere between 1995 and 2000
Tranmere manager John Barnes has said he is delighted to have signed midfielder Alan Mahon as he prepares for his first season in charge.
Mahon, 31, returns for his second spell at Prenton Park on a three-year deal.
"He was a fans' favourite and it's fantastic for the fans he's come back," Barnes told BBC Radio Merseyside.
"After the amount of players who've gone - fans' favourites if you like - we needed to give the fans something. So we're delighted with that."
"We're very lucky to bring players of his calibre into the club," Barnes continued. "From a financial point of view he could have made more money elsewhere.
"So for what we can afford, we've pushed the boat out for him. We won't be able to to that again.
"If we can get players of his quality in but cheaper - which is unlikely - then fine. But I'm quite happy Alan is in the squad."
We're looking at loan signings, so I don't anticipate to many more coming into the club in terms of actual signings
Tranmere manager John Barnes
Barnes is looking to make further additions to the club, although he admits it is going to be difficult and he maybe forced to be creative in signing other players.
"John Welsh is training with us and we're trying to tie that deal up. Then we're looking at loan signings, so I don't anticipate to many more coming into the club in terms of actual signings.
"Now we're going to exercise the loan option, which we have to because financially we can't afford it. It would be fine if we could get players of his [Mahon's] quality in, but I don't know whether we'd be able to do that."
Following goalkeeper Danny Coyne's move to Middlesbrough earlier in the week, the former Liverpool midfielder knows getting a new goalkeeper to the club is a priority.
But Barnes feels he needs to maximise the size of his squad if they are to have enough players for the season.
"We need a goalkeeper," he said. "It would be fantastic to get a goalkeeper of exceptional quality but there are certain numbers we need to get in.
"But right now - I'm happy with the quality we have. But we need more numbers.
"If the numbers can be of equal quality or better quality, that's fine. But now we're looking to get bodies in."
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