Andre Wisdom spent last season on loan at West Brom
The 22-year-old, who signed a new four-year contract with the Reds in May, made 24 Premier League outings last term during a loan spell at West Brom.
The newly-promoted Canaries will pay a loan fee of £1.25million for the England Under-21 defender, who can operate as a full-back or in the centre.
Carrow Road boss Alex Neil said on the deal: "I'm delighted as Andre fits our profile in terms of getting hungry players in who want to make their way in the game.
"He's also had Premier League experience with a few different clubs, so we're happy to get it over the line. It will add to the competition for places as he's a flexible player.
"In the past he's played centre-back and right-back. Having added competition to the left-hand side with Robbie Brady, it was important to add something to the right side as well.
"The squad is certainly getting stronger, which I'm really pleased about."
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