The England Under 20 striker penned a new deal at Villa Park last month - after bagging a hat-trick in the club's win over Barrow in the Carabao Cup earlier this year - before netting in the next round at Chelsea.
He has also bagged six times in the Papa John's Trophy this season - and will now attempt to help Ryan Lowe's side climb the Championship table.
He told the Preston club website: “I’m excited, I’m ready for the challenge and can’t wait to get started.
“It’s been a good journey so far and I’ve had the opportunity to go out on loan now to express myself.
“[My aim is to] just hopefully get some experience, some games under my belt and hopefully score some goals.”
Preston boss Lowe revealed the club have been keeping tabs on Archer for some time.
He added: “We’re absolutely delighted. I’ve been monitoring Cameron Archer for a while now.
“He’s a natural goalscorer who I’m really excited to work with and hopefully he’ll score some goals for us.