Pool captain leaves in last minute deal
The midfielder, who joined Blackpool after leaving Bury in the summer, departs Bloomfield Road having made 23 appearances this season.
The move sees him link-up with his former Leeds United team-mate Michael Brown, who is currently in caretaker charge of The Valiants.
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Hide AdPugh will remain with Port Vale until the end of the season.
A club spokesperson said: "Blackpool Football Club thanks Danny for his all round contribution this season and wishes him all the very best for the future."
It ties up Blackpool's deadline day deals after signing striker Raul Correia from Radcliffe Borough and Neil Danns on loan from Bury.