Buchanan has joined the team's pre-season training camp in Zillertal, where he will undergo his medical and sign professional terms with Werder after collecting 75 first-team appearances across his time at Derby.
The 21-year-old left-back, who can also play at centre-half and on either flank, made his England U21 debut in November 2020 alongside Bayern Munich's now Germany international Jamal Musiala and has collected seven youth international caps for his country.
He will add both versatility to Ole Werner's newly promoted side and competition for Anthony Jung on the left-hand side of defence.
"He's a very talented player who has a lot of experience despite still being young," said Werder director of professional football and scouting, Clemens Fritz. "We think he's got a serious amount of potential, and he plays with dynamism and real intensity."
Buchanan becomes the latest arrival in Bremen, with the Green-Whites recruiting fellow Brit Oliver Burke in attack and Amos Pieper and Niklas Stark in defence.
All four players will have the chance to make their Bundesliga debuts on Matchday 1 of the 2022/23 campaign, when Werder travel to Wolfsburg on Saturday 6 August.
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