The 20-year-old, who had been linked with several clubs in England's Premier League after he scored a stunning goal in a friendly against Manchester United in August 2013, has signed a three-year deal, Palermo said on their website.
Quaison made his debut for Sweden against North Korea in January 2013 and has scored twice in four internationals. He broke into the AIK side in April 2012, netting seven goals in 53 competitive games for the Solna side.
Relegated from Serie A after a turbulent season in 2012/13, Palermo bounced back at the first attempt, romping to victory in Serie B by a margin of 14 points ahead of second-placed Empoli.
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