It is indeed very similar to a KT (knight's tour). It is necessary to change the move rules, as a proper KT on a 5x5 grid is nearly trivial for an open path, and impossible for a closed path.
I was introduced to the problem in 2017, and became quite fascinated by it - so much that I wrote a program to find all solutions. It found (just as shyos pointed out) that there are 352 solutions when starting in the center (the problem as presented to me stipulated that the starting position could be anywhere on the grid). Of the 352 solutions, 96 were closed paths. By analyzing the program's results I was able to establish a fixed order to try for each successive move that will always lead to a closed path solution from any starting position, with no trial and error (backtracking) needed. If there is still any interest, I can post my algorithm. Here is one (closed path) solution for the center start position:
25 17 7 24 16
12 4 21 13 5
19 9 1 18 8
22 14 6 23 15
11 3 20 10 2