Son of City legend John, the right-back made 18 appearances for the Bantams on loan from Burnley during the 2017-18 campaign.
His arrival follows on from the departure of Niall Canavan to Barrow, with Hendrie being the club's sixth signing of the window.
Hendrie, 27, a former City academy product, said: “I am delighted to be here again and just want to grasp the opportunity I have been given with both hands.
"I pride myself on setting high standards every day, being a good professional and giving it my all. I am coming back a more mature person and have been given a second bite of the cherry which I hope to enjoy.
"I have only ever wanted to be successful in my career. If it is to be here, that would be very special. I am really focussed and hungry to progress up the leagues with Bradford City. I want to be a part of something good and I feel that can be done here.”
City manager Derek Adams: “We are delighted to be signing Luke. He is a versatile defender who can play at right-back and at centre-back.
“He adds experience to the team. His determination, work ethic and attitude will help us during the season’s run-in.
“The Bradford City supporters know what he is all about, and I understand were sad to see him leave last time. He has unfinished business here, so we are looking forward to seeing him in action for us.”