The Irishman, who can play either left-back or left midfield, was at Vale Park for nearly three months last season, making 14 appearances.
The 19 year old will be included in the squad that face Sheffield Wednesday in the Carling Cup on Tuesday evening.
Adams told the club's official website: "I have made no secret of my desire to strengthen the squad in all areas and I am grateful to Plymouth Argyle for their financial help in this deal, which has allowed the loan to happen.
"Although I wasn't manager when Damien had a spell at Vale Park last season, he is a player who has been highly recommended to me.
"I look forward to working with him during his time at the club."