Mohamed Diame has joined Newcastle United after a £4.5m release clause in his Tigers contract was triggered by the Championship club.
The departure of the Senegal international, who has signed a three-year deal, is the latest setback in a sorry summer for the Tigers.
Steve Bruce’s departure plus a lack of signings have left the Yorkshire club as odds-on favourites for relegation.
City, who are understood to have rejected an improved bid of £5m from Middlesbrough, are still hoping to bring Chris Coleman to the KCOM Stadium despite the Football Association of Wales rejecting an approach earlier this week.
Diame made 58 appearances for City and scored the winner in last May’s Championship play-off final.