Newly-appointed Blues boss Lee Clark has made Lovenkrands his first signing as the club aim for promotion to the Premier League after missing out via the play-offs last season.
The 32-year-old, who was recently released from Newcastle, brings plenty of international and domestic experience, having won 22 caps for Denmark during a 14-year career which included spells at Schalke, Rangers and the Tyne-side club.
Clark told the club's official website: "He did very well for Newcastle, has scored goals at this level and he played a huge part in getting them promoted from this division, actually winning the league.
"People I have spoken to about him have been very impressed. He had a good pedigree at Rangers scoring Champions League goals and we are looking forward to adding him to the squad.
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"When I spoke to him about the move he made a decision very quickly. Once we got an agreement, he's bringing his family down, moving to the area, doing that very, very quickly as well so it shows you he's very committed to the job in hand and that can only be good for us and the supporters.
"I have got to see him quite a bit and he's a very popular guy as well. He has a good work ethic and he ticked all the boxes for me in terms of not just being a good player but by being a good character."