Terence Scerri made his Premier League debut with Hibernians in season 2000/01. With the Paolites, he won all major honours and finished as top score in season 2008/09. The following season, he joined Valletta.
Last year, he was on loan with Hamrun Spartans but a long-term injury ruled him out for several months.
Naxxar had earlier secured the services of Andrew Decesare from Sliema Wanderers.