Cole to join Town at start of July
The 27-year-old midfielder will join up with his new team-mates as a free agent when his contract ends at Bristol City.
Cole progressed through the Academy ranks at Ashton Gate before making his debut for his hometown club in 2005. He went on to make more than 300 appearances for the Robins.
“I loved my time at Bristol, they gave me a chance in the game and I’ll always be grateful for that,” Cole told the Club website.
“It’s the right time for me to move on though. I need a fresh challenge and when I knew Ipswich wanted me, I didn’t have to think too hard about the decision.
“I had a few options but with Mick McCarthy and Terry Connor in charge at Ipswich, that shows the intent of the Club to move forward and I can’t wait to get going.”