Norwood has signed a three-year contract and will join the Terries when his contract with United expires on 1st July.
Manager Simon Grayson told the club’s official website: “I am delighted to have secured the signing of Oliver, he is a brilliant footballer and someone that I believe will do well for the football club.
“Oliver turned down a number of other clubs to be part of our team and with the Championship experience that he will bring, I believe he will be a key player for us.
“Manchester United offered him a new deal, but he wanted to leave to pursue his career, which says a lot about him.”
Northern Ireland international Norwood added: “I am over the moon to have become a Huddersfield Town player.
“I met with the manager and after speaking to him and the chairman there was only ever one club I was going to join. His ambition for the club matches where I want to take my career and I see this move as the best step for me.
“I had been at Manchester United from the age of seven and I love the club, it was always a dream to play for United, but there comes a time when you have to be realistic.
“I want to make a career for myself, I don’t want to be constantly going out on loan, I want to settle at a club.”
