Tigers pounce for Delaney
The 21-year-old, who can play in either midfield or defence, has been on loan at Division Two side Mansfield Town but that has now been cut short by his switch to Humberside.
New Hull boss Taylor has moved quickly to return to his former club and snap up a player he signed for Leicester during his tenure with The Foxes.
"The main reason I'm here is Peter Taylor and I got a phone call at the beginning of the week saying that Leicester and Hull City were in negotiations over a fee," said Delaney.
"I knew then that I wanted the move and once I'd spoken to my people and Leicester were happy everything went quite smoothly.
"It is difficult to leave them because I've made a lot of friends there but at the end of the day it's about playing football and being successful.
"This is a fantastic opportunity for myself and from what I've seen with the new stadium and everything there'd be first division clubs who would be proud to have what Hull City have.
"All the ingredients seem to be here and in Peter Taylor I think the club has the right man for the job."