The 28 year-old arrives at the University of Bolton Stadium on a two-year deal after departing Leeds United.
Born in Macclesfield, Murphy joined Crewe Alexandra’s Academy and went on to make his professional debut for the Railwaymen in 2008 as well as captaining the club.
He played in over 160 games for the Cheshire based outfit before joining Leeds United in 2013 for a fee believed to be over £1million.
And while at Elland Road, he made over a century of appearances and enjoyed two loan spells with Burton Albion before leaving the Yorkshire side on August 1.
Speaking to bwfc.co.uk following the switch, Murphy said: "I’m delighted to be here and I can’t wait to get started and get to know everyone at such a great club.
"It’s a fantastic club that’s been in the Premier League and looking at the squad for this season, it shows real potential.
"Having spoken to the manager, and with the direction the club is going in, it was an easy decision for me."
Manager Phil Parkinson added: “We are pleased with the signing of Luke. He’s a player with plenty of Championship experience and we are looking forward to working with him.”
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