The 25-year-old had reportedly been in East Yorkshire to discuss terms with the Barclays Premier League newcomers and to undergo a medical ahead of a £3million move.
A statement on the French club's official website read: "Evian Thonon Gaillard FC and Hull City have reached an agreement for the permanent transfer of Yannick Sagbo. ETG FC wishes every success to Yannick for the rest of his career."
Hull have not yet commented on this latest development.
France-born Sagbo, an Ivory Coast international, has previously been linked to Celtic and West Ham, the club of his half-brother Guy Demel.
Tigers boss Steve Bruce has spoken of his admiration for the forward, who has previously played for Monaco, and of a desire to push through a deal.
Hull have already signed George Boyd, Maynor Figueroa, Curtis Davies, Ahmed Elmohamady, Allan McGregor and Steve Harper as they prepare for their return to the top flight.
Bruce has also been linked with a move for his former Wigan midfielder Wilson Palacios, who is currently at Stoke.
Source: PA
Source: PA