This will facilitate a transfer from Division 1 Lancing FC that is expected to complete in the next 24 hours.
Knowles has had spells at Burgess Hill, Hassocks and Lancing since leaving Steyning just over a year ago.
Living and working in Steyning, the former player of the year was a freescoring fans favourite last during his last spell at the club.
His signing is another welcome boost to the squad, in addition to Aflie Gritt returning a couple of weeks ago , and prior to that Shug'aa, Clark and Robertshaw all signing.
The club would like to give a warm welcome back to Craig and we look forward to seeing you in the stripes of Steyning very soon.