Pizarro, who is Bundesliga's all-time leading foreign scorer with 176 goals in 383 matches, signed the deal as a free agent until the end of the season after his contract with champions Bayern was not renewed last season.
"I feel extremely good and it is important to be on the pitch as soon as possible," Pizarro, who has won six league titles and as many German Cups, one of which with Werder, told reporters. "I had other options but they were not for me. Bremen is my second home."
"I obviously hope to be playing more and often but it is a coach decision," said the forward, who returned to Bayern in 2012 as a substitute option.
Pizarro, who will be 37 next month, first played for Werder between 1999-2001 and then again in 2008 to 2012. He also had two spells at Bayern Munich, with whom he won the treble in 2013, including the Champions League trophy. He also had a brief stint at Chelsea in the Premier League.
"Pizarro fits perfectly to us with his character and charisma," said Bremen sports director Thomas Eichin. "He was always an issue for us."
Werder, who have scored just three times in three league matches so far, are desperate for goals as they look to avoid another rollercoaster campaign like last year and secure a European spot this season.
(Reporting by Karolos Grohmann; editing by Sudipto Ganguly/Amlan Chakraborty)
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