Jarrett, who joined the Canaries last summer from Wigan Athletic, completes the move the Deepdale on the back of a loan spell which saw the midfielder feature in the Lilywhites' unsuccessful play-off campaign, culminating in Monday night's home defeat to Leeds United. Victory in the end of season spectacle would have meant a second successive promotion for Jarrett, who was part of the Wigan side that went up last term.
Jarrett failed to make a place in Nigel Worthington's side his own after being hailed as the natural replacement for Damien Francis, who was to move in the opposite direction. An injury sustained in a pre-season friendly with Inter Milan meant he was not fit for the start of the season, and the man whom Worthington gave a debut while the pair were at Blackpool was farmed out to Plymouth Argyle on loan.
After returning in January, Jarrett enjoyed a run in the City side but was later dropped and then sent on loan to Lancashire.
The loan fee paid by Preston was £30,000, while the cost of the final transfer has yet to be disclosed.