The young midfielder will be looking to gain some much needed first-team experience during his stay at Portman Road after signing a two-year contract extension
The 19-year-old Australian joined Spurs in January 2011, having impressed on trial after deciding to leave APIA Leichhardt Tigers.
His only senior appearance for the Lilywhites came during last season's League Cup defeat to Stoke City at the Britannia Stadium, when he replaced Sandro as a 70th minute substitute.
Confirming the move on Twitter, Luongo wrote: "Happy to have Things sorted at Ipswich.. It should be a good experience for me at this great club."