Striker Paul Taylor has joined Rotherham United on a half-season loan, subject to the paperwork being ratified. The 26-year-old was made available for transfer by Blues boss Mick McCarthy at the end of last season.
Millers manager Steve Evans told their club site that the switch came about very quickly with other sides after the ex-Peterborough man: "I only heard last night that Paul was in talks with two fellow Championship clubs in relation to joining them on a long term loan.
"I quickly spoke to my chairman and within minutes our chief executive spoke with Marcus Evans at Ipswich Town. Within an hour I was given permission to talk with the player as a financial arrangement had been agreed with both clubs.
"After talking to the player it became very evident to me that he had a preference to join Rotherham United. In turn I asked the player to sleep on his options and I was delighted to receive a call first thing this morning to say the player still wanted to be a Miller.
"I am not going to say what this player can bring to our squad, in simple terms his performances will demonstrate that to our supporters.
"He is a lad who like every other player we have signed in recent times has a point to prove and from my conversation with him he cannot wait to get started.
"I would expect us to add further to our squad within next few days, I will add nothing else.”
Taylor added: "I am delighted to have signed for Rotherham United and I am really looking forward to this exciting challenge.
"After talking with Steve Evans and [assistant manager] Paul Raynor it became clear to me very quickly that this was a club going places and I wanted to be part of what was happening here.
"I’ve been down to New York Stadium this afternoon and I was extremely impressed with what I saw which made the decision to sign even easier.
"This is a fantastic opportunity for me to join a good club with fantastic support and I just cannot wait to put on the Rotherham shirt and do my best for the club.”
Taylor was signed from Posh for an initial £1.5 million - potentially rising to £2.5 million - in the summer of 2012 but missed virtually all of his first season at Portman Road after suffering a serious foot injury in his third game for the Blues.
Following his return, he found his opportunities limited under McCarthy's management with the Town boss saying in April that he's "not my type" and that he was not in his plans.
Overall, the Liverpudlian, who spent time back at Peterborough on loan last season, has made just nine starts - the last at Crawley on Tuesday - and 16 sub appearances for the Blues, scoring once.
Taylor, whose Town contract is up next summer, joins ex-Town keeper Scott Loach and former loanees Paul Green and Frazer Richardson at the New York Stadium.