The 29-years-old scored four goals in 17 appearances for Oxford last season, before picking up an injury against the Grecians ironically enough.
"He is a very confident player and has shown his commitment to us by signing a two-year contract, he is already house hunting down here," Tisdale told the club's official website.
"He has played at a very high level and has been virtually injury free for the last four seasons, it was only the injury he suffered against us that curtailed his season, but that's football.
"He has a very good pedigree and brings the best out of players around him. I'm looking forward to working with him."
Basham started his career as a trainee at Southampton and has gone on to play for Wrexham, Preston and Oxford, scoring 64 goals in just under 200 career games.
Source: http://www.confguide.com/newsArticle.do?id=6744