It is too late to ask for input into the returning dev coming back. That decision has already been made and he has likely given notice at his current job. There is a 0% chance that any objection at this stage would be listened to. If you didn't want to see him ever come back then you should have let management know all along that there was a problem with his work (so this is as much your fault as management's). That said, people change a lot in two years and his skills may be much better, so give him the benefit of the doubt when he does return.
As a dev and not a manager, it is unreasonable to expect to be consulted before they hire someone, especially someone they already know and respect. So get over your hurt feelings on this. Often in cases like this, JOe (the old emplyee) calls Bob (your boss) and says something like, "Hey we are having a layoff here, is there any chance I could come back?" The boss, having been happy with his work when he was here and knowing of nothing since he left that would make him question that judgement and knowing that the current dev is working too many hours and that they had just approved a new position, says, "Sure." In over 30 years in the workforce, I can count on the fingers of one hand the number of times I have seen a current non-management employee consulted before hiring someone that management already knew.
What you do have is a problem of not feeling as if you have been rewarded. Have you asked for any rewards and been turned down? Maybe it is time to move on in that case. But if you have never asked, again it is as much your fault as management's that you haven't gotten what you wanted. Rewards don't magically happen. Management can't read your mind and know what you want.
The real issue here though is how to move forward knowing this guy is being hired. First, you need to talk to talk your manager about job responsibilities and how that will work. You think you will be senior to him but that is an assumption. I have seen people brought back who were put into a leadership role over those who stayed. You need to have it be clear what the roles will be before this person is on board.
Next you need to prepare for his return in a professional way. The system has changed a good bit since he left. Policies on how to do things may have changed, architecture may have changed, heck even the source control might be done differently. Put together a retraining document to help him get oriented into how things are now. If you know there are some things of his that you reworked that he will likely not be happy with, then you need to discuss them with your manager and get him to support the new way of doing business before this guy gets here.
When he gets here, treat him with the same respect any employee deserves. Don't be angry or snippy or act like a child who didn't get his way because this person is back. That will only make him look better and you look worse. Even if you choose to leave over this (which seems like an over reaction), then as long as you are there, make an effort to work with this person professionally. You don't have to want someone to be there or like him, to treat him professionally and courteously.