The 32-year-old was named in the League Two Team of the Year last season and he has also featured for the Hatters 12 times this term.
However, he has now been granted permission to make the move to National League outfit Tranmere.
"This signing is a big plus for us. He is the type of player and character that we want at the club and I think it strengthens our squad even more so I'm delighted to be able to bring him here," manager Gary Brabin told the club's official website.
As well as Luton, the centre-back has also played for Barrow and Fleetwood Town.