The former Norwich and England Under 21 international was told he could leave on a free transfer at the end of last season by blues boss Joe Royle due to some inconsistant displays whilst in the blues starting 11.
Earlier on this season Marshall spent time on loan at Wolves before joining Dennis Wise's side in Januay initally on a months loan which was then extended for a further month.
The Town number 19's loan contract expired at the end of this weekend, and following his full time move is likely to line up for Millwall in their FA Cup Semi-Final Clash against Sunderland next month.