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Luongo joins Ipswich Town on a free transfer after his contract with Middlesbrough expired, seeing the 30 year-old return to the club where he spent a season on loan in 2012 while on the books at Tottenham Hotspur.
"It’s been 10 years or so since I was here before and it’s great to be back," Luongo said.
"I want to be in a team that’s doing well and I think that this is a good opportunity here. I’m delighted to get the deal done and now I’m focused on helping the team get promotion."
Ipswich Town boss Kieran McKenna was delighted with his arrival, saying: "Massimo is an accomplished midfielder with an abundance of experiences in club and international football.
"He is a versatile and intelligent player who strengthens our options for the second half of the season. His experience and professionalism will also be an important addition to our dressing room."