The 27-year-old completed a routine medical this morning before putting pen to paper and being unveiled at a press conference.
Crouch told the press: "It's fantastic to be back and the club is going places. The club is unrecognisable to the last time I was here."
Harry Redknapp added: "I'm delighted to have Peter back. He's a terrific player and I never expected to see him back here."
Crouch scored 19 goals in 35 appearances during the 2001/2002 season and is already one of the most important players in the club's recent history if you consider:
a) Without his goals that season, we would have surely been relegated to the third tier and who knows what direction we would have gone in then?
b) The fee we received from Villa for Crouch contributed greatly to building the side that won the First Division title a year later.
c) He injured himself just before the biggest South Coast derby in history, which might have had a bearing on the result that day.
Since leaving the club in 2002 Pete has found the net against us twice. There was a lot of bitterness when he scored the last minute penalty at St. Mary's to knock us out of the cup a few years back but that has since been forgotten.
He also scored on the last day of our "Great Escape" season when we had secured safety so nobody cared about that. The "Scummer" chants seemed more in jest than in hate and you can tell that everyone bar the odd idiot has forgiven him for his stint at Southampton.
I personally think this is a terrific signing as the lanky striker has come a long way since his first spell at Fratton Park. He's an England international with a good goalscoring record for club and country and should link up well with Jermain Defoe.
The "little and large" partnership could terrorise defences and as a partnership for England they have scored 10 goals in 7 games when playing up front together so on paper there should be plenty of goals scored between the pair of them.
This signing may be the first of a few "big names" to arrive at Portsmouth this season as Harry is sure to wheel and deal again before the end of August. For the time being I look forward to seeing Peter don the Pompey number 9 shirt once again.
Now all we need to do is find something witty to rhyme with "He's big, he's blue..." I've heard a couple of good ones such as "he's gonna score past you" and "I love his girlfriend too" so it'll be interesting to see which one sticks, if any!
Welcome back Peter, here's hoping you will be even more successful in a blue shirt than the last time you were here!