The 24-year-old has signed a three-year contract with an option for a further year and is believed to have cost last season's beaten FA Cup finalists around �9.5 million ($15.8 million, 12 million euros).

"Abel is a fantastic signing and highlights just how far the club has come in such a short space of time," Hull manager Steve Bruce told the club website.

"He is an exciting talent and like myself, I'm sure the supporters can't wait to see him in action."

Hernandez, who played for Uruguay at this year's World Cup, will fill the void created by Shane Long's move to Southampton last month for a fee of around �12 million.

Hernandez joined Palermo from Penarol in 2009. He spent five years with the Sicilian club and scored 14 goals last season as they were promoted from Serie B as champions.

The striker, who has scored seven goals in 14 international appearances, is Hull's seventh new signing after Jake Livermore, Robert Snodgrass, Tom Ince, Harry Maguire, Andrew Robertson, and Michael Dawson.