The 22-year-old Norsgaard towers over the peloton at more than two metres in height and is a powerful time trialist, placing third in the U23 time trial world championship in Innsbruck last year and fourth in Yorkshire this season.
His time trialling abilities helped him to claim the Tour de l'Avenir stage with a 30km solo attack out of the day's breakaway. He comes to the Movistar team from the Riwal Readynez Pro Continental squad.
Norsgaard is Movistar's 12th new rider of the season and the eighth under 23 rider along with Gabriel Cullaigh, Iñigo Elosegui, Juan Diego Alba, Einer Rubio, Johan Jacobs, Juri Hollmann and Matteo Jorgenson.
Prades, 32, earned his new contract in part through an overall victory in the Vuelta a Aragón. He also has won a stage in the this season. Previously Prades claimed the overall Tour of Norway and Tour of Turkey in 2018 while racing with Euskaltel-Murias.