Ex-Hatter Lee joins Ryan Reynolds' Wrexham as Whalley moves to Accrington
The 27-year-old was released by Town following five years at Kenilworth Road in the summer, having spent the majority of the last two seasons out on loan.
After 30 goals in 124 outings for the Hatters, he has headed to Racecourse Ground, penning a three year deal at the Welsh club who are owned by Hollywood actors Ryan Reynolds and Rob McElhenney.
Speaking to the club’s website, Lee said: “I'm absolutely delighted to sign.
"I'm so excited by the project at Wrexham; I've had a few chats with the manager over the last few weeks and I'm buzzing to get going now.
"I wanted to join somewhere that excited me - I had a few EFL offers but after hearing about the ambition of this club, it was Wrexham for me.
"I feel like I know what it takes to get promoted.
"We got back-to-back promotions at Luton; I joined them in League Two and left them in the Championship, so if I can do something similar at Wrexham I think we'll all be delighted."
Dragons boss Phil Parkinson added: “We're delighted to welcome Elliot to the club.
"He's a top player who will bring real quality in the final third of the pitch.
"He's been involved in a successful team at Luton and we're really looking forward to integrating him with our squad in the coming weeks.
"In all my chats with him, he's really understood and been enthused by what the club is all about.
"That buy-in is just as important as his ability."
Meanwhile, ex-Town winger Shaun Whalley has rejoined Accrington Stanley.
The 34-year-old, who initially played for the club between 2006-08, joined Luton in June 2013, making 35 appearances and scoring four goals.
He then went to Shrewsbury in 2015 and spent seven years at Montgomery Waters Meadow, featuring 257 times, with 39 goals and 52 assists.
Stanley boss John Coleman said: "Shaun is experienced, he knows the league and he knows the way we operate.
"If you get him on the ball, he can cause problems for defences and hopefully he'll do that for us this year."
Whalley himself added: “I played for Accrington a long time ago, but it's good to be back.
"Hopefully I can add my ability to the group and we can kick on this season.
"I will try my hardest in every single game, every training session, and I'll be as dedicated off the pitch as I am on it.”