The 31-year-old, who is based in Milton Keynes, scored on his debut when he joined from Slough Jets in the middle of last season.
He became a fan favourite with his no-nonsense approach to the game and was worth a lot more to the team than his 13-point tally from 33 games.
A player with a wealth of experience, and last season he made his 500th English Premier League appearance.
Wales was part of the Herd’s EPL Cup winning team, before his season was ended when he broke his ankle at Swindon on the final weekend of the league campaign.
He was still in Coventry to cheer on his teammates to victory in the play-offs despite having his foot in a cast.
With his cast now removed, the Gillingham-born forward is on his way to full recovery and is looking forward to the coming campaign.
The latest Bison re-signing said: “I no longer have the cast and I know there is going to be a lot of hard work, but I am focused on being back and ready to play once the season starts.
“The league is getting stronger and more competitive so there will be more teams battling for the title.
He added: “I believe the Bison will be one of them, and it would be nice to pick up the trophy we missed out on last year.
“It was really special for me to win the EPL Cup as this was the first time in my career I had lifted the trophy.”
Having snapped up another excellent returnee, Bison player/coach Doug Sheppard said: “Muzzy (Michael Wales) was the perfect fit for the room when he arrived.
“He brings energy and leadership to the team. He is also very versatile and can play as either a forward or defenceman, but we will play him as a forward.”
“I have no worries about his fitness as I am sure he will be ready for the start of the new season.”