Lilywhites chairman Derek Shaw held discussions regarding a swoop on Tuesday and he reached a positive conclusion to the talks.
Davis arrives at Deepdale from Portmore United and the central defender has passed a medical despite carrying an ankle knock collected in the Concacaf Gold Cup.
The First Division outfit have secured a work permit for Davis as he has played in the bulk of Jamaica's competitive internationals during the past two years and was injured for the matches he missed.
Preston also have the option to purchase Davis next summer with manager Craig Brown pleased with his new acquisition.
"It has been much publicised that we have been chasing Claude and the deal was agreed in principle some time ago and we are pleased he will join us," Brown told the club's official website.
"Claude has passed a medical but has a slight ankle injury which he picked up in the Gold Cup and will work with Andrew Balderson before hopefully getting involved in a couple of weeks."
