Towers, who guided Wick to SCFL Premier Division safety last season alongside Jon Tucker, replaces sacked joint management duo Barry Pidgeon and Craig Stuart.
Following a committee meeting at Mill Road on Tuesday, the board came to the decision a change was required.
In four successful seasons in his previous stint, Towers guided Mullets to a third-place or higher finish.
This time, Towers inherits a team fourth from bottom in the Premier Division, with getting away from danger his initial aim.
He said: “I’m really pleased to be back at this club. I had a really successful stint at the club previously and I’m hoping this one proves to be as successful.
“I’ve seen a few of the games in recent weeks and I feel there is enough quality in this team to remain in this division.
“I’m not looking to make too many changes, I’m a big believer in giving players already at clubs an opportunity and that’s what I’ll do here.
“The squad is more than capable, I just think some confidence is lacking.”
“We’re in a little bit of trouble at present but I believe a couple of wins will put us back on the right track as we enter the new year.”
Having finished tenth and 11th in the two previous campaigns, Towers’ ultimate ambition is to get Mullets back fighting for a top-six finish in years to come.
He added: “When I was here previously we were fighting at the top end of this division heading into the final few matches. I don’t just want to settle for mid-table mediocrity, I want what I had when I was here previously.
“Obviously this season is about making sure we get things right but in the coming years I want us to be challenging and pushing, whether that be in cup competitions or the league.”
Towers’ first game back as manager comes on Monday when Mullets welcome rivals Chichester City (11am), for their first match of 2017.
The newly-appointed Arundel boss knows it won’t be easy but hopes to see some fight from his team.
Towers said: “These are the games I want to be part of and I’m sure that the players do also. We’re playing a rival, a team doing well and it provides me with a chance to see what the players here are about.
“It’s not going to be easy but I’d much rather play teams at the top and really test ourselves.”
Arundel vice-chairman Simon Butler is pleased to see Towers return to the club and said: “I was Richard’s assistant in his time here previously and he is a winner. He won’t accept anything less than the best from this team and we are hopeful he’ll turn things around.
“I feel we’ve underachieved so far this season, especially with the quality of player that we have.
“Richard wants to get the best out of what we’ve already got here, while making a couple of changes as well. I was sorry to see both Craig Stuart and Barry Pidgeon go as I was close to them. As a committee we felt change was right and we believe Richard is the right man to turn things around.”
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