The Irishman, who can play either left-back or left midfield, spent close to three months at Vale Park last season, making 14 appearances in total.
The 19-year-old has now returned to the League Two outfit and will be included in Adams' squad for their Carling Cup clash against Sheffield Wednesday on Tuesday.
The Vale boss 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."