The 31-year-old played 15 games for Gateshead at the beginning of the season, while on loan from Carlisle.
In January Penn was released by League Two Carlisle and joined Wrexham until the end of the season.
"Obviously a big factor in me coming back was the time I spent here last season," Penn told the club website.
Gateshead have signed midfielder Russell Penn on a season-long deal from fellow National League side Wrexham after his contract expired.