Doncaster Rovers beat competition from Scottish Premiership clubs to land former Newcastle United youngster
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Bailey, a central midfielder, signed a two-year-deal with Rovers after rejecting a new contract at National League side Gateshead.
After trialling with Doncaster in the summer of 2021, the 24-year-old spent two seasons with the Heed and played a key role as they won promotion from the National League North before helping them to the FA Trophy final last season.
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Hide AdMcCann, who made Bailey his seventh summer signing, said: "There was quite a bit of interest in him, especially from the Scottish Premiership.
"He's been outstanding for Gateshead, everyone you speak to will tell you that."
Bailey is predominantly a defensive midfielder but can also play in defence. He scored six goals in the National League last term as Gateshead finished fourteenth.
His arrival means McCann currently has eight options in central midfield, with only three players likely to get the nod to start should he choose to play his previously preferred 4-3-3 system.
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Hide AdMcCann said: “I think we are finished in there. I’m really pleased with the eight we have got, including Liam Ravenhill and (Jack) Degruchy. I think it’s a really good eight we have got.
"Possibly we will look to get one or two of them out on loan to get some games, but I think we are quite strong.”
On his next steps in the transfer market, McCann said: “We are trying to move into the wide areas of the pitch now, the ammunition for the likes of (George) Miller and Joe Ironside.”