The Luxembourg international signed for the Canaries on a free transfer from F91 Dudelange last summer.
He spent last season on loan at Belgian club Waasland-Beveren.
Speaking about Sinani side, Terriers boss Carlos Corberan said: "We're pleased to add Danel to our squad. He is a player with the versatility to play down the middle as a number 10, or on the right side, and he gives us real possibilities," the Terriers boss told the club's official website.
"He has scored a lot of goals in different countries and now he has to show his ambition and level in the Sky Bet Championship. In the middle of the pitch, he can improve our finishing, as opposed to helping in the build-up. He is also a good option as a taker in set-piece situations, which is something we wanted to add to the squad.
"He's an international player and that gives him really good experience too."
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