TWTD understands that Stephen Hunt will join up with the Town squad for pre-season training next week and is set to sign a one-year deal.
Hunt, 32, signed for the Blues last November on a short-term contract which was eventually extended until the end of the season.
The former Wolves, Brentford, Hull City and Reading man made 16 starts and eight sub appearances for Town, without scoring.
At the end of the campaign, manager Mick McCarthy said he would consider whether to offer permanent deals to Hunt and loanees Frazer Richardson — who is understood to be close to joining Rotherham - and Paul Green over the summer.
Hunt, who has spent the summer opening Tides, a gastropub in Rosslare, said he was keen to extend his stay at Portman Road, tweeting: "It's been a pleasure to play for this club. To the players, staff, fans and the town, if I'm not back, all the best. Hope to be back.”