The English Football Association's membership committee voted against Steve Bruce's side being re-named Hull Tigers on Tuesday, and Allam - who pledged to cut ties with the club he has backed since 2010 - said he will keep his promise, despite the recent setback.
The full FA council must adhere to the recommendation from the membership committee, in order to officially block the proposal.
Allam said: "How could you imagine I would change my mind? People who know me know that I do not go back on what I say."
The 74-year-old Egyptian has not given up hope of the name change still taking place, as he revealed his intention to ballot the club's season-ticket holders.
"We will announce a ballot this week and we will challenge the decision," Allam said.
"If the FA does not allow our plan, we will walk away, put it on the market to sell the club. We would not put it into liquidation; there is a lot of money at stake. I will get my money when I sell."
Hull's fans have responded negatively since the proposal was put to the FA in December, with campaign group 'City Till We Die' born to repel the move.
Allam has claimed the club would be more commercially viable with a less common name, with a total of 13 football league sides using the 'City' moniker - including six current Premier League teams.
