The 29-year-old left the Cumbrians in the summer of 2006 after helping the club to gain promotion to League One, but failed to establish himself with the Tigers.
United's managing director, John Nixon, said: "Because of the circumstances surrounding Michael's contract with Hull City, a 10 month loan was the most cost-effective way we could agree with them.
"His arrival is a big step forward for us, but I would like to add that we are still trying to bring in another player before the start of the new season."