Bruce has been allowed to leave Portman Road after falling down the pecking order since Roy Keane's arrival as manager towards the end of last season.
The 25-year-old has made just one first-team appearance this season, which ironically came against the Foxes in December.
Bruce is the second player to arrive at the Walkers Stadium this month following manager Nigel Pearson's previous capture of veteran winger Nolberto Solano.