The central defender has joined Kettering Town who are currently flying high in the Southern Premier League Central .
The former Morecambe man, a Wembley winner with the Shrimps back in 2007, made 27 appearances for the Dolly Blues after being recruited in the summer from Barwell by then manager Phil Brown.
As one of the senior players, Stanley then stepped up alongside Matty Blinkhorn on Brown’s departure in September.
The 35-year-old spent six games in the dugout as caretaker manager before Mark Fell’s appointment.
“I’d like to thank everyone at Lancaster City – staff, players and fans – for the last few months,” said Stanley.
“I also want to thank chairman Stuart Houghton for giving me the chance to be a manager earlier in the season.
“I fully enjoyed it and even though it was short, I still want to be a manager one day.
“I want to wish everyone good luck for the season and hope the club can climb the league table and finish the season where they belong.”
A former England ‘C’ international, Stanley has also played for Hereford United, Torquay United, Bristol Rovers, Southport and Lincoln City.
The Dolly Blues are 19th in the NPL Premier Division after back-to-back defeats over the Christmas and New Year period.
Fell’s side went down 2-0 at home to Workington on Boxing Day before a 3-1 reverse followed at Marine on New Year’s Day, Glenn Steel scoring at both ends as the hosts came from behind for victory.
City welcome eighth-in-the-table Matlock to Giant Axe on Saturday, looking to get back to winning ways.
This weekend’s visitors lost 2-0 at home to Gainsborough Trinity last time out but are firmly in the play-off hunt entering 2019.