Santos joined the Tractor Boys last summer, despite pleas from both Town fans and then manager Paul Groves for him to remain at Blundell Park.
The 2002/03 player of the year was rock solid in defence for Town but couldn't avoid the clubs relegation.
Santos' time at Ipswich was less happy, with the big man failing to impress the Portman Road fans and manager Joe Royle.
Santos nearly moved to Watford in March but the deal fell through with Santos opting to stay in Suffolk.
New Burnley boss Steve Cotterill has made the clubs poor defensive record his priority, already capturing John McGreal from Ipswich and Cheltenham's Mike Duff. A move to Turf Moor would also see Santos link up with former Town goalkeeper Danny Coyne, who signed yesterday for Cotterill.