The 28-year-old is reunited with former Wigan team-mate James McArthur, who he partnered in midfield during their FA Cup final win over Manchester City in 2013.
“I can’t wait to get started,” said McCarthy, who has won 41 caps for Ireland. “It feels like a very nice club, nice family club.
“The fans obviously come out in their numbers and I spoke to James, he couldn’t speak any more highly of it.
“I’m delighted to be here; it’s a fresh start that I thought I needed.”
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