The 27-year-old full-back becomes our third new recruit for next season following the January signings of Teemu Tainio and Tom Huddlestone.
Stalteri joined Bremen as a 20-year-old in November 1997 having previously played for Toronto Lynx in his homeland. He spent three seasons playing for Bremen's reserve side before making his senior Bundesliga debut in August 2000 in the first game of the season against Cottbus, who included his international teammate Kevin McKenna. Both became the first Canadians to sample top flight action in Germany, with Stalteri becoming the first to score in the Bundesliga.
He has been capped 50 times for his country - scoring 6 goals - and was a Gold Cup winner in 2000.
The Etobicoke-born player won the Bundesliga title and German Cup with Bremen in 2004 and went on to play eight times in this season's Champions League before elimination at the hands of Lyon at the last 16 stage - after emerging from a group that included Inter Milan, Valencia and Anderlecht.
"I am delighted we can announce our next signing for the new season," said Sporting Director Frank Arnesen. "Paul Stalteri is a defender who can play in midfield - so he is a multi-functional player, who can play on both sides.
"He has come from a tough environment at Werder Bremen and their players are very well known for their mentality. His biggest success was last year winning the double and he has now had good experience of European football. I am delighted to get him in, there were a lot of clubs chasing him including some from England.
"He will be a big plus for the squad."
We are delighted to announce the signing of Canadian international defender Paul Stalteri from Werder Bremen.