Young defender Dillon chose to follow Lee Picton to Mariners Park in the summer of 2016 after making the move from Blyth Spartans.
The pair linked up at Croft Park in the 2015-16 season, with Dillon growing as a player under the tutelage of assistant manager Lee, who also played at centre-back in his career.
In joining Shields, he made a return to the Northern League, having spent an impressive spell with Newcastle Benfield as a teenager.
He had earlier been a youngster with Carlisle United, and his time at Benfield caught the eye of several clubs, including Gateshead, who snapped him up in 2014.
Dillon won the league with Gateshead's under-19s side before linking up with Blyth in the summer of 2015.
He quickly made an impression at Croft Park, winning the club's Player of the Month award for August 2015, and he made 41 appearances (38 starts) for the club in the 2015-16 season as Blyth won 99 points, finishing second in the Evo-Stik Premier Division.