Boss Phil Brown has swooped for the attacking midfielder , who joins from Curzon Ashton.
And the Dolly Blues manager has also re-signed defender Steve Williams, who made 13 appearances for the club last season.
Baker began his career at Manchester United before joining an array of professional clubs, including Preston North End, Bury and Oxford United.
Last season, He made 10 appearances in the National League North for Curzon Ashton, scoring two goals.
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“Richie’s an attack-minded player. He carries a threat and has an eye for goal," Brown told Lancaster City's official website
"He’s very good on the ball and tactically astute. Richie can play off the front or in a deeper midfield role.
"He’s versatile, which is really important to me as we won’t be carrying a large squad this season. It’s vital we have flexibility within the group. He’s another target secured and I’m sure the fans will enjoy watching Richie play.
"It’s great that Willo has committed himself to us for the up and coming season. He has lots of qualities, he’s cool and calm on the ball, strong and powerful in both boxes and has a real appetite for success."