"He showed a real desire to be here because of the way we play - he believes it will really suit him and I agree," said Dons boss Russell Martin.
"I had a chat with the gaffer here and I believe MK Dons is a club that is going places. I was part of a successful Blackpool team last season and hopefully I can bring some of that positivity here," he said.
MK Dons finished 13th in League One in 2020-21, nine points outside the play-off places.
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