There had been much speculation as to the identity of Town boss Gary Peters' next signing, but Stallard, 30, was not one of the names mentioned.
The well-travelled striker has played with Peters before, when the boss brought Stallard on loan to Preston.
A delighted Peters told ShrewsWeb: "He's played in higher divisions and done really well since starting with Derby County as a youngster.
"I signed him at Preston on loan and liked him - he's a good target man, he can score goals and will be a good signing."
And fans can expect more signings soon, as Peters revealed he had been busy in recent weeks, even compromising his tan for the sake of the club. He added: "Even though I've been away there have been a lot of phone calls, I think my left ear is browner then my right ear as I've spent the time sat by the pool with a phone stuck to my ear," the gaffer explained.
News on more signings could come tomorrow, with Huddersfield's Nat Brown widely expected to join the Gay Meadow outfit.