It had been reported that Townsend had been training with the Hatters with the aim of securing a return to Premier League football since leaving Everton at the end of last season.
The winger came very close to signing for Burnley over the summer, only for the Clarets to rescind their contract offer at the last minute.
The 32-year-old brings with him plenty of top-flight experience having racked up 264 appearances for Tottenham, Queens Park Rangers, Newcastle, Crystal Palace and Everton, but he hasn’t played since March 2022 due to an ACL injury.
‘I feel like it’s a good fit and these last couple of weeks have been good for both parties. I think it had to be right and I feel over the last two weeks we’ve had a look at each other and done that,’ Townsend told Luton’s official website.
‘I’ve seen where I can help this team and on the flipside the manager has seen where I can help – whether that’s on the pitch, in the dressing room or on the training field – with my enthusiasm and experience.
‘Plus, Luton are my local team – I live 20-25 minutes away so I’ve kept my eye on their progress and watching the Championship play-off final and see them win promotion was great for the club.
‘I never thought I’d pull on the Luton shirt, so it’s a huge honour to play again in the Premier League for this club, and hopefully get help this club get as many points as we can and see where it takes us.’
Townsend, who will wear the No.30 shirt for his new club, has a tough task on his hands to keep Luton up in their maiden Premier League campaign.
Rob Edwards’ side are 17th in the table having won just one of their first eight games, while only Bournemouth have scored fewer than their six goals.
In the top-flight, Townsend has scored 25 goals and made 28 assists, including three strikes that won the Premier League Goal of the Month award, with his thunderous volley for Palace against Manchester City in 2018 winning Goal of the Season.
The winger also scored three goals in 13 caps for England, with his final appearance for the Three Lions coming back in 2016.
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