The fee for Bruce is believed to be similar to the £200,000 Sheffield United offered for his services before the move fell through.
Bruce: "I enjoyed my time at Ipswich and the fans were fantastic to me. I wish the club every success in the future,"
Leeds Boss Simon Grayson says he is pleased to have signed Bruce at the second attempt, saying: "Alex is going to be a good member of the squad. He can play at centre-back, right-back, and as a holding midfielder.
"We felt we were short in those areas at this moment and we're delighted he's come.
"He's got a lot of experience, he's played in the Championship and the Premiership and he's what we want - a player who knows the division, is hungry and wants to be successful.
"We tried to sign him a year ago when we were in league one, Ipswich wouldn't let him go then we got a call a week ago to say he was available, and everything got agreed."
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