Chandler becomes the second player in as many days to make the switch from Nuremberg to Frankfurt after Japan international Makoto Hasebe penned a two-year deal on Monday, while Adam Hlousek also left the relegated side to join Stuttgart on the same day.
United States international Chandler signed a three-year contract at the Commerzbank-Arena, keeping him at the club until at least June 2017.
After coming through the youth ranks at Frankfurt, Chandler made the switch to Nuremberg in 2011.
He subsequently made 95 Bundesliga appearances, but following Nuremberg's drop to the second tier, has returned to Frankfurt.
Chandler is set to feature for the United States at upcoming FIFA World Cup in Brazil, before linking up with his new team-mates.
And sporting director Bruno Hubner was thrilled with the acquisition, telling the club's official website: "We are delighted that the transfer worked.
"It's nice that Chandler returns to Frankfurt. We wish him much success with the United States national team in Brazil."
