Town have completed the signing of Irish international winger Kasey McAteer from Leicester City.
The fee is understood to be £11.5 million plus add-ons with the player having signed a four-year deal.
Yesterday it emerged that the Blues were targeting the 23-year-old with the clubs quickly tying up a deal.
The Blues have been looking for a right-sided attacker to replace Omari Hutchinson, who left to join Nottingham Forest for £37.5 million last weekend.
"I’m delighted to be here and can’t wait to get started,” Town’s new number 20 shirt told the club site.
"It’s a very attractive project which is being built here and I want to add myself to that.
"I’ve been to Ipswich as an away player and I know how good the support is. As soon as I heard Ipswich were interested it was the only move I wanted to make.
"The aim is to get promoted again and that’s what we will push for every day. I want to be a part of that and I aspire to be the best version of myself, which is something I will be looking to bring to the squad.
"I’m excited to get to work with the boys and the staff and I can’t wait to meet the fans.”
Northampton-born McAteer joined Leicester aged eight and made his first senior appearance in the Premier League in a 4-0 victory over Newcastle in December 2021.
Having had spells on loan with Forest Green Rovers, with whom he won the 2021/22 League Two title, and AFC Wimbledon, the right-sided forward has gone on to make a total of 27 starts and 29 sub appearances for the Foxes, scoring eight goals, including his side’s second in the 2-0 win against the Blues at the King Power Stadium in May. He was a member of the squad which pipped Town to the 2023/24 Championship title.
McAteer has won six full Republic of Ireland caps, scoring one international goal. He will become the fifth senior Ireland international in the squad alongside skipper Dara O'Shea, Chieo Ogbene, Sammie Szmodics and Jack Taylor.
The signing has been made in time for McAteer to be eligible for Saturday’s visit to Preston North End.
That would be his second trip to Deepdale in eight days having come on as an 86th-minute sub for the Foxes in their 2-1 defeat there last Saturday.
McAteer also came on as a sub in the opening day victory over Sheffield Wednesday by the same scoreline, in the 78th minute, as well as playing the full 90 in the on-penalties Carabao Cup defeat at Huddersfield.