The move will do away with the Association Football Club (AFC) moniker which has been part of the Yorkshire club's name since their formation over a century ago.
Revealing the move in the Hull Daily Mail, Egyptian-born businessman Allam said: "Hull City is irrelevant. My dislike for the word 'City' is because it is common.
"City is also associated with Leicester, Bristol, Manchester and many other clubs. I don't like being like everyone else. I want the club to be special.
"It is about identity. City is a lousy identity. Hull City Association Football Club is so long.
"In the commercial world, the shorter the name, the better. The more it can spread quickly."
Bernard Noble of the Hull City Official Supporters' Club was philosophical about the news, telling BBC radio: "I'm disappointed because I'm a bit of a traditionalist.
"But this guy saved us from liquidation and administration and it's his club.
"There will be disappointment there but I think we will realise that going into the Premier League we want to be a bit different, and he wants to be that bit different to get the business up and running.
"He's a very, very successful businessman."