The Belgian, 24, has penned a two-year deal with the Tigers, with the club holding an option for a third year.
Lokilo came through the academy at Anderlecht before moving to England, with the wingman making one first-team appearance for Palace as a youngster in 2017.
Lokilo, who featured 39 times for Rovers in 2020-21 after a loan stint in the second half of the previous season, most recently played for Turkish side Istanbulspor where he made 16 appearances during the last campaign, scoring four goals for the Super Lig outfit.
The wingman is City’s second signing of the close season and follows on from the addition of Manchester City loan striker Liam Delap, who has joined for the 2023-24 campaign.
On the outgoing front, former Nottingham Forest defender Tobias Figueiredo has joined Brazilian outfit Fortaleza, while Tyler Smith and Callum Elder have linked up with Bradford City and Derby County respectively.
Hull are also reportedly close to signing former Wolves defender Ruben Vinagre, while the Championship club are looking at alternative goalkeeping options after ending their interest in Karl Darlow.
The Newcastle United player impressed in a loan spell in East Yorkshire last term, but the transfer demands of his parent club and the financial package involved has ensured that City will now look elsewhere.
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