Egyptian-born businessman Allam revealed the decision in an interview with the Hull Daily Mail on Friday morning.
Hull will do away with the Association Football Club (AFC) moniker which has been part of the Yorkshire club's name since their formation in 1904.
Allam, who took charge of the club in 2010, told the Hull Daily Mail that he viewed the word City as "common", "irrelevant" and a "lousy identity".
He instead wants to market the club as Hull City Tigers locally and Hull Tigers to national and international audiences.
"Hull City is irrelevant," said Allam, who took over the Tigers in 2010 following their relegation from the top flight and whose investment is credited with saving the club from a significant financial crisis.
"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 Tigers, we have a really strong brand."
The club later released a statement in response to coverage of the rebrand, and confirmed plans for a new club crest to be introduced in time for the 2014-15 campaign.
It read: "The business name at Companies House had its 'Association Football Club' suffix removed in the spring of this year, leaving the club to be named 'Hull City Tigers Ltd'. This will now be used in official club statements, regarding any of our commercial operations.
Source: PA
Source: PA