Combative midfielder Jonathan Smith has signed for the Hatters for £50,000 from League Two York City.
The 25-year-old impressed while on loan and has penned an 18-month deal that will keep him at Kenilworth Road until the summer of 2014.
Smith netted once during his six appearances, his goal coming on his last appearance in the 3-0 win over Alfreton on December 8, but was then recalled by the Minstermen to bolster their midfield.
His transfer will go through on January 1 – subject to a medical – as he follows new winger Scott Neilson into Kenilworth Road.
Boss Paul Buckle said: “It goes without saying that myself, the coaching staff and players, are thrilled to have Jonathan with us permanently.
“In the time he was with us he was fantastic, and it was a shame when he had to return to York because he was really beginning to hit form - as was shown in his last game in which he netted against Alfreton.
“He’s a winner, and they are hard to find – especially one who won the League Two title like he did last season. That kind of experience is invaluable. The same goes for Scott Neilson – he won promotion with Crawley two seasons running.
“These signings once again underlines our intent of success, as well as the draw of Luton Town to players.
“These are exciting times and I can’t wait to see both Jonathan and Scott in action in 2013.”
Smith will continue to wear squad number 24.
For more on his signing and all the transfer latest latest, pick up a copy of this Wednesday’s Luton News/Dunstable Gazette.