The former England international has enjoyed an illustrious career at the top of the game playing over 400 top flight games for numerous clubs including the Cottagers, Charlton, Tottenham and Liverpool.
Rovers beat several clubs to the signature of the 35-year-old including QPR and West Ham as Steve Kean looks to re-build his squad following relegation to the Championship in the last campaign.
|16/1||Blackburn are 16/1 to win the Championship in 2012-13 with bet365|
Kean told the club's official website: "Being able to bring Danny on board is a massive boost for everyone and I couldn't be more delighted.
"His record is there for all to see. He is a model professional, who has a real hunger to keep on playing football and we are thrilled he has decided to commit his future to us. This as a pivotal signing for us."