Kieran Richardson has signed a three-year contract which commits him to Sunderland until the summer of 2013.
The 25-year-old former Manchester United midfielder joined the club nearly three years ago and has since played 85 matches for the Black Cats.
Richardson, who had spells on loan at West Ham United and West Bromwich Albion during his time at Old Trafford, has also featured at left-back under Black Cats manager Steve Bruce.
Richardson scored just once for Sunderland last season, in the 2-2 home draw with West Ham in October, and was dismissed in the 2-2 draw at Manchester United earlier that month.
His high spot in a red and white shirt was scoring an impressive free-kick which saw off Newcastle United a year earlier and gave the Wearsiders their first home league success over their arch-rivals for 28 years.
permanent basis
Meanwhile, Ipswich manager Roy Keane is hoping to complete the capture of Sunderland goalkeeper Marton Fulop in the next 24 hours.
Hungary international Fulop has been a target of Keane's for some time, but the deal appeared unlikely to materialise earlier this week as Town wanted the keeper on loan, while the Black Cats were only prepared to agree a permanent deal.
Reports also surfaced that 27-year-old Fulop, who has been at Sunderland since 2007, had failed to agree personal terms at Portman Road.
However, the move is set to go ahead after Ipswich agreed to sign Fulop on a permanent basis, and talks are ongoing between Town and the player's agent.