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Ince moved to the KC Stadium in July after impressing during a loan spell in the Premier League with Crystal Palace last season.
The 22-year-old was out of contract at Bloomfield Road and opted to join Hull as he looked to establish himself as a top-flight player.
Blackpool were entitled to compensation from Hull due to his age and the two clubs have finally agreed a deal without the need of a tribunal.
"A compensation package has been agreed with Blackpool for the signing of Tom Ince without the need of a tribunal," Hull confirmed on their official website.
"Hull City will pay up to £2.3m for the 22-year-old, who signed for the club on a two-year deal in the summer."
Ince has struggled to make an impact for Steve Bruce's side, though, with just nine appearances in all competitions and a loan spell at Nottingham Forest in the current campaign.
