The Northern Ireland striker will join Norwich on July 1 after agreeing a three-year deal with the Championship club.
Lafferty scored 11 goals in 34 appearances as Palermo were crowned Serie B champions last season and the former Burnley and Rangers forward is excited at the prospect of returning to English football.
He told the club's official website: "Norwich is a team that wants to get promoted back to the Premier League at the first opportunity, so I'm excited to come here and start playing football for a team like this.
"I've played in the Championship before and I've played against Norwich, and things I noticed about the club were the fans and the football they played.
"Speaking to the gaffer, everything he said and everything he wants me to do, it's good to have someone like that believing in me.
"I can't wait to get started."
