The 34-year-old brings a wealth of experience to the Aussie side having spent the vast majority of his career in the Premier League with stints at Bolton, Charlton and Blackburn.
"I'm delighted to be joining the club for next season," Todd said.
"It's a big move but one that I'm looking forward to. We've enjoyed the city and I think it presents a great lifestyle move as well as an exciting football challenge.
"Perth Glory is on the up and progressing well and from what I've seen the coach is bringing together a quality group of players and I'm keen to be part of that."
Todd made seven starts for Derby in the Championship last season with a further four appearances from the bench whilst also having a loan spell at Northampton.
"Andy can see what we're trying to do at the club and to have someone of his calibre underlines our desire to build a squad capable of taking us into the finals," Glory coach Dave Mitchell said.
"We've made a concerted effort to bring quality into the club and I'm very happy to have Andy make a commitment for next season.
"We have looked carefully at players, taken time to see them in action and sat down with them to determine their desire to play in Perth.
"It's not just their playing ability but also their personality and Andy fits the bill perfectly."