The 28-year-old Republic of Ireland international has made 70 appearances for the Black Cats since his £4m switch from Charlton Athletic in January 2008.
However, he became surplus to requirements under Steve Bruce and followed Paulo da Silva and David Healy out of the Stadium of Light.
Nine Times
Reid, who joins Blackpool for an undisclosed fee on a contract until the end of the season, started his career with Nottingham Forest in 1999 before moving to Tottenham Hotspur in 2005.In a loan spell at Sheffield United earlier this season, the midfielder played nine times, scoring two goals.
He has earned 28 senior caps for the Republic, netting three times.
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