"Despite being only 22 years old he has amassed over 150 league appearances and also has Premier League experience.
"He is a player the manager rates extremely highly and we believe he will prove to be an excellent signing for the club."
Tonge has been with Sheffield United for eight years, making more than 250 appearances for the club.
"I am delighted to have signed a player like Michael," said Stoke manager Tony Pulis. "I have been a long-time admirer of him and he will bring a lot to our squad.
"He can play in a number of positions, which is important, and he will add some balance to the squad."
Higginbotham, a former Manchester United defender, joined the Black Cats from the Potters for £2.5m last summer.
He has also played for Southampton and Derby after starting his career as a trainee at Old Trafford.
"He was a huge success here last time and did very well at Sunderland so to get him back is brilliant news," added Scholes.
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