Stead has initially moved to Portman Road on loan, but the two clubs have agreed a fee in the region of £600,000 for the deal to become permanent in the New Year transfer window.

Stead made the last of 47 appearances for the Blades in last week's Carling Cup game against his former club Huddersfield Town, but was hauled off at half-time after failing to impress. He had scored 11 goals for the club since arriving from Sunderland in January 2007.

Manager Kevin Blackwell said: "It's an opportunity for Jon to play – naturally he wants to start games and I cannot guarantee that here at the moment."

The Blades still have plenty of attacking options including James Beattie – who returned to action after injury last weekend – Darius Henderson, Billy Sharp and Danny Webber.

Stead joins Ipswich as a replacement for former Rotherham striker Alan Lee who moved to Crystal Palace for a fee in the region of £600,000 last week.

Defender Richard Wood will be staying at Sheffield Wednesday – for now.

The Owls have rejected a transfer request from Wood who is a £2m target for Championship rivals Coventry City.

However, Coventry chairman Ray Ranson is refusing to give up the chase for the highly-rated centre-back and says his club could return with a fresh offer in the New Year transfer window.

"We put a number of offers and proposals, including player-exchange deals, so it was disappointing that we could not push anything through," said Ranson. "Sheffield Wednesday's position is that any money from sales has to go straight to the bank so they are loath to sell anyone at any price. We will review the situation in a few months."

Owls manager Brian Laws insists that none of the club's best young players are for sale and says Wood has accepted the decision to block his transfer request.

"Richard Wood did hand in a transfer request and I am not prepared to lie about it because it is a fact – but I have spoken to him at length and I have told him that there is no way that the request will be granted. The club have made that 100 per cent clear and he accepts that.

"I want to build a team around Woody and he is very much in my plans," added Laws. "We could sell any number of players but we are not selling our best young players at this present time."

Laws refused to reveal the reasons given by Wood for his request, saying: "They are between the club and the player and I don't think it is fair they are made public. It is nothing personal, he just had thoughts in his head but he accepts our decision and will give 110 per cent for this football club while he is here.

"Football clubs who are trying to bring in players can make it very clear that they are after one of your players.

"It can result in unrest but I would like to make it quite clear that the situation with Richard Wood will not change at this time, along with the likes of Mark Beevers and Tommy Spurr. They are not leaving so other clubs can stay away.

"I am satisfied, and I want the supporters to be reassured, that from the discussions I have had with Richard that we are happy about the way we are moving forward and that Richard Wood is part of our plans."

Leeds United agreed to cancel the contract of French winger Sebastian Carole by mutual consent.

Rotherham United have signed Spanish striker Omar Garcia on a one-year deal.

Garcia, 24, joined the Millers on trial last week after being released by Atletico Bilbao. He could make his debut in Saturday's League Two game at Chesterfield.

Teenager defender Shane Killock has joined non-league Harrogate Town on a month's loan from Huddersfield Town.

Former Barnsley and York City striker Jon Parkin has joined Preston North End on a permanent deal after being deemed surplus to requirements by Premier League newcomers Stoke City.

Grimsby Town have completed the signing of Manchester City defender Javan Vidal, 19, on an initial one-month loan.