Sheeran, who grew up in Suffolk and is a lifelong supporter of the team, has acquired a 1.4% stake in the recently promoted team.
The 33-year-old musician will get long-term access to the executive box at the team's home in Portman Road. However, as the investment is “passive and minority”, the singer will not be on the club's board.
"It’s any football fan’s dream to be an owner of the club they support, and I feel so grateful for this opportunity," said the ‘Shape of You’ singer.
"I have lived in Suffolk since I was three years old and, while I travel the world and sometimes feel like an outsider in big cities, Suffolk and Ipswich have always made me feel part of the community and protected."
Sheeran has been the team's main shirt sponsor for three years now and also got the opportunity to design the club's Suffolk-inspired third kit.
"It’s such a joy to be a fan of Ipswich Town,” he added. “There are ups and downs but football is all about taking the highs and the lows. I'm not a voting shareholder or a board member, this is just me putting some money into the club I love and them returning the gesture, so please don’t get onto me with signing suggestions or tactics to play.”
"I'm excited for the Premier League to start this weekend. Let’s go!"
Ipswich chairman Mark Ashton said that "the support Ed and his team have shown us over the last three years has been nothing short of remarkable and for him to make this investment feels like the natural progression in our relationship.”
"For one of the biggest artists in the world to give us so much of his time and give the club such incredible exposure around the world, while asking for very little in return, highlights just what makes this relationship such a special one."
Ipswich Town will begin their Premier League journey this Saturday at 12:30pm in a home game against Liverpool.