Whittaker, 28, was a free agent after becoming one of ten players who declined to transfer their contract to Charles Green's "newco" Rangers over the summer.
He becomes Chris Hughton's first signing for Norwich, and the Canaries manager told the club's official website: "In Steven we have a player who can play anywhere across the back four and anywhere across midfield, so there's plenty of versatility there.
"It's probably a good time for him. Sometimes it is time to move on to a different club and go there with a lot of enthusiasm, and he has international experience too.
"He has of course been used to playing at a very high level when he was at Rangers and in a lot of big games with a passionate crowd behind him. So the stage of the Premier League is certainly one that won't faze him."
Whittaker spent five years at Ibrox after joining from Hibernian for £2 million, winning three Scottish Premier League titles, two Scottish Cups and three Scottish League Cups. He also played in Rangers' 2008 UEFA Cup final defeat to Zenit St Petersburg.
"All of my experience to date has been in Scotland, so I am really looking forward to the challenge of playing in the Premier League - I'm very excited about it," he said.
"When I spoke to Chris Hughton I was very impressed with his plans to progress Norwich City, and everyone I've spoken to in the game has had nothing but praise for the club and the city of Norwich. I am looking forward to meeting up with the squad and the staff."
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