The former Celtic star caught the eye and won himself a deal until the end of the season.
“I signed a short term deal with Derby County that runs till the summer.
“I am delighted to join this ambitious club.
“I am honored and it is a privilege to play under a legend like Frank Lampard.”
Ambrose, 30, also attracted interest from Bolton and Cardiff City, as well as Turkish side Akhisarspor.
But the lure of working under Lampard and competing for Premier League promotion proved too much.
He added: “The club’s target is to get the automatic promotion or playoff spot, which I pray that I could be able to play a big part of that by helping them achieve this by God’s grace.”
The move has yet to be officially confirmed by the Pride Park side.
During his time at Parkhead, Ambrose won four top-flight titles, the Scottish Cup and the League Cup.
He then became a fans favourite at Easter Road after linking up with former boss Neil Lennon.
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