The Italian strugglers confirmed this evening that they had agreed an unspecified deal for the Argentinian midfielder that will end his Ewood Park stay after just 18 months.
"Palermo announces that it has reached with the Blackburn Rovers Football Club in an agreement for the acquisition of rights to Mauro Abel Formica," a statement on Palermo's website read.
"The Argentine footballer, born in 1988, will be available to the Rosanero technical staff from tomorrow and will be presented on Friday."
Formica was relegated with Rovers last season and joins a Palermo side second from bottom in Serie A and without a win in eight games.
The 24-year-old joined Blackburn for a reported £3.5million from Newell's Old Boys but had not played for the club since their 4-1 home defeat to npower Championship leaders Cardiff on December 7.