The wing-back becomes Phil Parkinson's fourth signing of the summer, penning a three-year contract that runs until the end of the 2028-29 season.
Kaboré returns on a permanent basis after a productive loan spell last season, in which he made 32 competitive appearances and registered eight assists as Wrexham finished seventh in the Championship, narrowly missing out on the play-offs on their first season in England's second tier.
"I'm very happy to be back. It feels good to be here again," Kaboré said.
"Everybody knows our ambition is to get to the Premier League, and I'm here to fight for that promotion. I'm here to fight for this club, for our fans, and to give back the love everyone gave me last season."
The Burkina Faso international marked his Wrexham debut with two assists in a 3-2 away win at Norwich City last season and quickly became a mainstay of Phil Parkinson's side, playing a key role as the Red Dragons secured the best league finish in the club's history.
His path to North Wales has taken in a string of loan spells away from parent club Manchester City, including spells at Mechelen, Troyes, Marseille, Luton Town, Benfica and Werder Bremen, before Wrexham finally turned his stay into a permanent one. He has also earned 55 caps for Burkina Faso, including a run to the semi-finals of the 2021 Africa Cup of Nations, where he was named Young Player of the Tournament.
Parkinson welcomed the permanent addition to his squad.
"We're delighted to welcome Issa back to the football club," he said. "He had a successful loan spell with us last year, and we're looking forward to working with him again and watching him really develop as a player this coming season."
The move gives Wrexham a settled, experienced option at wing-back as they aim to go one step further than last season's near-miss and secure a first-ever promotion to the Premier League.