He has had loan spells with Wigan and Sheffield Wednesday and joined Grimsby on loan at the end of last season.
Now, after helping The Mariners beat the drop from the First division he has agreed to join them on a longer-term contract.
"We have already seen enough of Terry to know how capable he is and we are delighted he has agreed to come to Blundell Park.
"He has the pedigree and class we need for success in Division One," manager Paul Groves told the club's official website.