Ilic was introduced as a Fiorentina player at a press conference on Friday and was delighted to join the Viola.
Ilic said: "When I knew Fiorentina was looking for me, I decided I wanted to move to Florence because I think the Viola team is the strongest in Italy and I wasn't interested in others.
"I didn't look at other teams, I only looked at Florence. It was good to see them strengthen with Giuseppe Rossi and Mario Gomez. The value of the group deserves at least Champions League football.
"I found it difficult at Palermo because every three months the coach or manager would change."
Ilicic scored 20 goals in 98 games for Palermo