Goal.com exclusively revealed last week that the 19-year-old was closing in on a move and he has now penned a four-year contract.
Boss Martin Jol is happy to have completed the signing of the Switzerland under-21 international as he looks to build a new side.
“Pajtim is a young, talented midfielder who has potential, so we are very excited about signing him on a four-year contract,” he told the club’s official website.
“He is a versatile midfield player who can adapt quite easily to more than one position. He is a key player in the Swiss under-21 team.
“I am delighted to have been able to add two talented young players to my squad with the signing of Pajtim Kasami today, and Marcel Gecov last week, as I believe that they are going to be good additions to the squad both in the short and long-term future.”
Kasami appeared 24 times for Palermo having joined the Serie A outfit from Swiss side Bellinzona 12 months ago, and he also spent time with Liverpool as a youth player.
He was part of the Swiss side that reached the final of this summer’s Under-21 European Championship.
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Official: Fulham complete signing of Pajtim Kasami from Palermo