The 23-year-old striker, who had been on loan at Craven Cottage for all of last season from Southampton, has agreed terms and put-pen-to-paper on a four-year deal.
The former Arsenal star, who recently broke into the international set-up with Portugal, was instrumental in helping the West London outfit charge to the First Division title last season and the club were keen to take him on a permanent basis.
The speedy forward was widely expected to move back to Portugal to Benfica, but Fulham have taken up the option they agreed with Southampton last August to sign him permanently.
Boa Morte grabbed 21 gioals in just 27 starts for Fulham last season and Cottagers boss Jean Tigana is keen to keep him as he prepares for life in The Premiership.
The former Sporting Lisbon ace will be one of Fulham's main strikers battling with Louis Saha and Barry Hayles for a place in the starting line-up.
The player himself said he was delighted to have sorted his future out by staying at Fulham.
"I am really happy to have signed with Fulham for the next four years and that we will be playing in the Premiership," Boa Morte told the club's official website.
"It is a great opportunity for me and for the team and I am looking forward to it very much."
The club's managing director Michael Fiddy also revealed that they were happy to secure his services after his performances last season.
"We are delighted to have agreed a deal with Luis for the next 4 years," said Fiddy." As a formidable part of the strike-force, the player showed great skill and commitment on the pitch last season and we look forward to his continued dedication in the Premiership."
Meanwhile, the club have also confirmed that promising young striker Calum Willock has signed a new two-year deal.
The 19-year-old hit-man played a pivotal role in helping the side's reserves win the championship and he is tipped for a bright future.
Willock admitted he was happy to pledge his future to the club and that he hoped to follow close friend Sean Davis into the first-team set-up.
"Obviously I am delighted to have signed for two years," Willock told the club's official website. "I can now settle down and look forward to concentrating on my Fulham career.
"This is such a big club and it's a dream come true to be a part of it. My ambition is now to go on and break in to the first team."
"I have been friends with Sean Davis for a long time. And I'll be looking to follow in his footsteps."
Tigana is continuing to ponder the possibility of trying to land Coventry City's Youssef Chippo, following The Sky Blues' relegation to Division One.
The Moroccan international has been linked with a move to West London, and sources in his homeland insist he remains on the wanted list at Craven Cottage.
