Green, who played in both legs of the play-off semi-finals against Southend and the win over Leeds at Wembley which took them to the Championship, said: "I enjoyed fantastic times at Doncaster.
"However, this a new chapter for me and something that I felt I had to do."
Rams boss Paul Jewell told his club's website: "Paul is an energetic, tenacious midfielder with an eye for goal and is in the prime of his career.
"He's been a pivotal part of Doncaster's success as they've risen through the leagues.
"He is just the type of character I want in my dressing room and I'm delighted to have secured his signature."
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