Ilicic becomes the sixth player to arrive at the Stadio Artemi Franchi ahead of the new season, with coach Vincenzo Montella looking improve on Fiorentina's fourth-placed Serie A finish in 2012-13.

The Slovenia international made 32 appearances for Palermo last season, but could not prevent the Sicilian club from being relegated from the top tier.

The 25-year-old reached double figures in goals for the first time, and his performances in an under-performing squad did enough to persuade Montella to sign him.

A statement on Fiorentina's official website announced the transfer.

"Fiorentina and Palermo have announced that they have reached an agreement for the transfer of Josip Ilicic, subject to the signing of contract by the player," it read.

"Ilicic was born in Prijedor, Slovenia, January 29, 1988 and last season with the Palermo racked up 11 goals in 32 appearances in the league and Italian Cup."