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The American-born midfielder has captained his country at under-20 level but has yet to make a first team appearance in England. He has signed a one-year deal with Town.
The LA-born youngster fits in to boss Gary Peters' plans to mould a young squad. Peters described Denny as a "bright young player" on the club's official website.
It is thought that Stoke were reluctant to let Denny go, and have therefore inserted a sell-on clause should Town cash in from the player.
Peters also said he believed that Denny was a better player than any of the third-year scholars procuced by the Town youth system.