Stearman trains with new team-mates after paperwork finalised
The 25-year-old defender trained with Blues this morning with the paperwork now completed over the move.
The versatile defender started his career with Leicester and progressed through their Academy system before going on to make more than 100 appearances at first-team level.
He played alongside fellow Town loanee Patrick Kisnorbo for the Foxes but following their relegation from the Championship in 2008, he joined Wolves.
Richard helped the Molineux club, then managed by Mick McCarthy, to promotion to the Premier League the following season and was a regular in their side in the two years they spent in the top flight.
He has made only a handful of first-team appearances this season though and has now been reunited with Mick and Terry Connor at Portman Road.
A former England U21 international, Richard also qualifies to play for the Republic of Ireland.