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He netted nine times in 16 games while on loan with League Two strugglers Rushden and Diamonds last season.
Laws told the Scunthorpe Telegraph: "He is a talented young player with pace who can score goals.
"I am looking forward to making him an even better player here with us.
"If we can provide him with the right service, then I think he could be a 20-goal a season player.
"He will become a vital part of our squad as we look to prove a force in League One this season."