Woodley play in the UniBond League Division One North and they issued a statement saying: "Ally was everyone's favourite. His entertaining style of football has been missed in recent seasons.
"We were aware that our fans wanted Ally back at the club and the new board have acted quickly in securing his services.
"Chairman Peter Sullivan has pledged his support to the new board of directors in bringing back Ally Pickering, his business background and connections are essential to Woodley's existence and survival.
"In Ally we know that if they show ability and desire they will get their chance, young local talent and experienced players will be basis of Ally's squad."