Carruthers was the third division's top scorer with 21 for Scunthorpe last season, and joins fellow striker signing Colin Little at the Moss Rose.
Carruthers started his career at Aston Villa and made six appearances in the Premiership. He also had a spell on loan at Hull City.
A £300,000 transfer took him to Stoke City in 1993 following their promotion to the first division, and he featured in more than 100 games for the Potteries side.
He moved on again the following season as £75,000 took him to Peterborough United, followed by moves to Darlington, Southend and Scunthorpe.
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