Saunders, like Callow, was not offered a new deal beyond this year, seeing his time in the brown and gold expire after two seasons.
At the end of the year, Hawthorn confirmed Saunders wouldn't be offered a new contract.
The small forward has since confirmed his plans for 2023, returning to the Redlegs to feature in their premiership defence.
"We are very excited to announce Jack Saunders has signed with us for 2023 and will be returning to The Norwood Football Club," a club post reads.
"An outstanding character and a product of our underage development program, Jack has already lived it and again will add to the Fortis In Procella culture at our club.
"A medium Forward with the versatilty to play in defence, Jack will be a great acquisition for us in 2023. We look forward to what Jack can bring and welcome him back to The Norwood Football Club."
The signing of Saunders comes within the same week as Callow's return to Norwood. The former Hawks forward was delisted by the club after 18 months at Waverley.