Steele eventually decided to travel back to the North West and join Chester City in October 2006, initially on loan. The move was made permanent in January 2007 but Steele was told in July 2007 that he was available for transfer after failing to settle at the club. His most memorable game for Chester was in an FA Cup second round tie at Bury on 2 December 2006, when he appeared as a half-time substitute, scored twice and was sent off for two bookings – the latter when celebrating his second goal. Unfortunately, Steele only managed one other goal in his time with the Blues; against Mansfield Town.
