He succeeds Ian Holloway, who left the club by mutual consent after the club's relegation to Coca-Cola League One at the end of last season.

Pearson, 44, becomes the Foxes' sixth manager since chairman Milan Mandaric took over at the Walkers Stadium 16 months ago.

The club had been keen to speak to MK Dons boss Paul Ince but the former England midfielder is now being heavily linked with Blackburn.

Northern Ireland boss Nigel Worthington, John Gregory, Simon Grayson and Paul Lambert were also thought to be in contention.

Pearson spared Southampton from relegation last season, a feat which - despite ironically relegating Leicester to the third tier for the first time in their history - could not save his job.

mfl