The midfielder had a year left on his contract at Deepdale but with game time very limited in his three years in PR1 so far, an agreement has been made to see him leave the club.
In a statement from the club, North End have said that the termination of the contract came at the player’s request.
Shortly after announcing the departure of Bayliss, after his contract was terminated, the Shrews announced their new man on a two-year-deal with an option of a third.
The best fans photos from Preston North End's 4-1 win over Huddersfield Town in the Carabao Cup.
Manchester United youngster being tested by Preston North End on a 'daily basis' after sparkling debut
Player Ratings: Huddersfield Town 1-4 Preston North End - Carabao Cup win on the road
Preston North End provides injury update on Manchester United loanee and addresses specualtion linking them to another Red Devils youngster
Wigan remain Championship relegation candidates but bookies' odds drift for Preston North End and Blackpool
Speaking to the Shrews’ website, he said: “I mostly just want to get fans on the edge of their seats and just get back to enjoying my football again."
The 23-year-old was transfer listed this summer upon his return from Wigan Athletic, where he spent last season out on loan. He played 16 times for the Latics as they won League One and earned their way back into the Championship. The Leicester born midfielder could not hold down a regular place at the DW however.
He had played just 21 times for the Lilywhites over the three years he had been at the club, initially brought in with high hopes for a seven figure fee from Coventry City. He took on the famous no.7 shirt at Deepdale but could not force his way into what has always been a stong midfield since his joining.
The hope was that he could take the place of Paul Gallagher as he reached the end of his playing days, but that never materialised.
Bayliss played under the different bosses for PNE, signing for the club under Alex Neil before Frankie McAvoy took on a head coach role. He got some substitute appearances under the Scot at the end of the 2020/21 season but failed to get a place in the squad the following campaign as he left for Wigan.
Ryan Lowe has opted against using Bayliss and allowed him to go on the transfer list this summer, culminating in his depature for nothing.