The Lancastrian, promoted to the Premier League with Bournemouth in 2014-15, is seeking to make up for lost time after being on the fringes at the Vitality Stadium in 2018-19, which has seen him make just three appearances.
Pugh, 31, was a mainstay for the Cherries for a number of seasons and has made 274 appearances for the club since joining from Hereford in 2010.
His addition will provide further competition for places at Hull, who have stressed that his arrival will not be the precursor to the exit of star wingers Jarrod Bowen and Kamil Grosicki.
On joining Hull, Pugh said: “I am ecstatic about the new challenge ahead. I have met the gaffer and the rest of the squad and the team unity is something that shone through straight away.
“The team has been on a great run recently and it is a team that fights for each other all the way. I am really looking forward to being a part of that.”
Doncaster Rovers defender Joe Wright has signed a two-year contract extension.
The 23-year-old centre-half, who started his career at Huddersfield Town, is expected to return to training later this week after a spell out with an ankle injury, which has sidelined him since November.
A clause activated in Wright’s contract last March extended his deal at Rovers until the end of the current season. He is now contracted at the club until the summer of 2021.
Talks were delayed regarding Wright signing a new longer-term contract, but an agreement has now been reached.
Wright, who joined the club on a free transfer from Huddersfield in the summer of 2016, said: “I am really happy to get this deal over the line. I have been talking to the club for a while, so I am delighted to get it sorted.
“It shows the faith the gaffer has in me as I have been injured for a while, and it fills me with confidence that he has offered me a deal.”
Rovers’ weekend FA Cup opponents Oldham Athletic will be backed by a sell-out contingent of 3,800 fans in Saturday’s Keepmoat Stadium encounter.
Former Bradford City captain and Crawley midfielder Romain Vincelot has signed an 18-month deal with Shrewsbury Town, who will face the Bantams at Valley Parade next Tuesday.