
The 37-year-old has linked up with the Pilgrims after helping Crewe Alexandra win promotion from League Two at the end of last season, making 33 appearances in the process.
Green is United's third new signing of the summer following in the footsteps of striker Jordan Burrow and defender Lewis Gibbens.
Reflecting on Green's arrival at the Jakemans Community Stadium, United boss Craig Elliott said: "Paul is a player I personally know very well and he has had a fantastic career. He will bring vital experience but also quality and energy to our midfield.
"He has recently played a big part in helping Crewe to promotion to League One and I was delighted that he turned down higher league interest to sign for us.
"He is extremely fit and highly motivated to gain another promotion and I am very much looking forward to working with Paul this season."