The Danish international is all set to replace Tyrone Mings at Portman Road.
The 22-year-old left-back has been confirmed as on his way to Portman Road by Danish publication Ekstra Bladet this morning, with Esbjerg confirming the deal themselves on their official website.
Knudsen will now undergo a medical at Ipswich today before he finalises personal terms with The Tractor Boys ahead of his move to the club.
Knudsen impressed for the Danish under-21s at this summer’s European Championships in the Czech Republic and his form for Esbjerg has been fantastic over the past two seasons.
He also has two caps for the senior Denmark side, after making his debut last year.
Ipswich are getting their hands on a top talent with the signing of Knudsen, who is set to add some real depth to the Ipswich squad ahead of, hopefully, another promotion chasing campaign in Suffolk next season.
He will have to battle with fellow Scandinavian Jonathan Parr for the left-back position. The Norwegian however has a history of injury problems, which might be behind Mick McCarthy’s decision to bring in Knudsen.
Ipswich lost regular left-back Tyrone Mings to Bournemouth earlier this summer.