Palermo made a bid for Faurlin earlier in the window, but that was rejected by QPR.
They have now returned and this time have come to an agreement with the Hoops and are now taking him on loan until the end of the season.
Harry Redknapp had insisted he wanted the 26-year-old to stay with the club, but with other players due to arrive before Thursday's deadline - he has sanctioned his departure.
Faurlin, who is anxious to secure regular first-team football, is set to become the third Argentine to leave England for Palermo following on from Mauro Boselli and Mauro Formica - who completed respective moves from Wigan and Blackburn earlier in the month.
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