Newey is latest Millers signing
Sheffield-born Newey (27) joins on a free transfer after spending last season at Bury but is perhaps best known for a four-year spell at Grimsby Town, where he made over 150 appearances in all competitions.
He began his career with Leeds United and has also spent time at Leyton Orient and Cambridge United, as well as loan spells at Darlington and Rochdale.
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Hide AdChief operating officer Paul Douglas heralded the deal as a great signing for the club.
He said: "Tom is a quality player who Ronnie Moore has admired for some time.
"He is a local lad who wants to do well for Rotherham United and is someone who we believe will provide some serious competition for Jamie Green at left back."