The battling midfielder was released by The Owls this summer.
The box-to-box midfielder scored the opening goal of the club’s season last term, but struggled with an Achilles problem and was allowed to leave on a free transfer this summer.
Coke, who arrived from Motherwell in 2010, played just 20 times last season and that goal v Brighton and Hove Albion was his only goal for the entire campaign.
This summer has already seen the 29-year-old take in a trial spell with Championship side Blackburn Rovers, which came to nothing, but he is now set to make a move to another Championship club.
Coke, who spent part of last season on loan at Bolton Wanderers, has seemingly impressed Ipswich boss Mick McCarthy enough to earn the deal and he will be hoping to help Ipswich to promotion, after just missing out last time round.
McCarthy confirmed the news, stating:
"Giles and Larsen [Toure] will be staying with us, they’ve both been offered deals.
I knew about Giles anyway from him playing against us over the years and I’ve always liked him as a player. He’s come in and done really well.
The same report also claims that Ipswich are all set to sign up fellow trialist Larsen Toure.