Manager Paul Jewell is looking for an improvement in fortunes for his Portman Road side and sees Murphy as an ideal addition.
The 28 year old Republic of Ireland international had a previous spell on loan with Ipswich last year, scoring 6 goals in 18 appearances. He has expressed his delight at returning, "I'm looking forward to playing for the club again and we will see how it goes from there."
Alongside other new new signings, Jimmy Bullard and Ibrahima Sonko, Murphy is expected to slot straight into the squad for the visit of Leeds United on Saturday.
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