The defender was released by Telford because of their much publicised financial problems. The 27-year-old was voted player of the season for Shropshire's other club.
Jimmy Quinn was delighted with the capture, as Whithead shunned more established rivals in favour of the Meadow. Quinn said: 'I spoke to him a couple of times and he's had Bristol Rovers and Oxford after him so we're delighted he's signed for us.'
Whitehead appeared optimistic about his future with Town, saying, 'The club has moved back into the League and this is very attractive, Shrewsbury look like they are going forward in all the right places'.
Quinn hinted that the signing could bring about a change in formation, featuring three centre halves. He said: 'I'm going to have a look at playing a different shape which I have played in the past and been successful with'.
While the new signing is a boost, Town fans may be wondering, however, 'If it ain't broke, why fix it?'