Albornoz, who was born in Stockholm, has signed a three-year contract with the club and will link up with the Reds after "a suitable break" following the end of Chile's participation at the 2014 World Cup in Brazil.
Ready for the Bundesliga
"His call-up for the World Cup underlines his qualities and his potential," said sporting director Dirk Dufner, who oversaw completion of the transfer formalities in Brazil. "Miiko is a very promising player and we believe he's going to strengthen Hannover 96. We believe he's got what it takes to make the breakthrough in the Bundesliga."
Renowned for his strong left foot, the 23-year-old full-back played for Sweden at youth level, before making his debut for the South Americans earlier this year and subsequently earning a spot in their 23-man World Cup squad.
Joining after World Cup
"After Ron-Robert Zieler, Hiroki Sakai and Didier Ya Konan, we now have a fourth player participating in the World Cup and we will be keeping our fingers crossed for him," added Dufner. "Chile have certainly made a promising start to the tournament with wins over Australia and Spain."
Like Hannover's other World Cup representatives, Albornoz will be given extended time off to recover after the tournament's completion, before arriving in north Germany to prepare for the 2014/15 Bundesliga season.