The 31-year-old arrives at the club after previous spells at Huddersfield Town, Bury, York City, Curzon Ashton and most recently Hednesford Town.
On the news, joint-manager Paul Rawden said: "Danny is the first of many names we'll see coming into the club. He's got bags of experience at a higher level, he's what we need in the middle of the park.
Racchi added: "I'm really pleased to get things sorted early. It means we can hit the pre-season training hard from the off.
“We're going to be part of a new squad that knows what happened last year and we're going to want to put a smile back on the supporters faces.
“Football is all about winning but we have to put the hardwork in first. Paul and Russ put me under no illusions of what they want from me. I'm going to enjoy the next few weeks before we get going.”