The furore over the name change has divided Hull's fans, with some staunchly against the proposal put forward by owner Assem Allam, while others have been more accepting of the idea.
Hull's application was denied by the FA in April, but on Tuesday the club confirmed that they were contesting that ruling.
"The Football Association has agreed with Hull City to clarify the position regarding the club’s name change application," a statement on the club's website read.
"The club has chosen to commence an arbitration under Rule K of the Rules and Regulations of The Football Association to challenge the decision of The FA Council.
"Any arbitration commenced under Rule K of the Rules and Regulations of the Football Association is confidential. However, in the interests of the supporters, the Football Association and the club have agreed to confirm that an arbitration has commenced and once a decision has been reached it will be published.
"All other aspects of the arbitration shall remain confidential until such time as a decision has been made."
Hull also announced on Tuesday that striker Yannick Sagbo had joined Championship outfit Wolves on loan until January.
