He helped stabilise the club after the sacking of Claudio Ranieri
Craig Shakespeare has been rewarded for keeping Leicester in the Premier League.
The Englishman has been handed a three year contract to manage the 2015-16 Premier League champions, having served as caretaker after the sacking of Claudio Ranieri at the end of February.
Under his stewardship, Leicester recovered to a mid-table Premier League finish and reached the Champions League quarter finals.
"This is a really exciting opportunity for me to continue along this new path in my career and to continue to work with a club and a group of staff I’ve grown extremely close to. I’m grateful to the owners and the Board of Directors for their continued faith and support," he told the Leicester City official website.
"Our preparations for pre-season and the new Premier League campaign have been on-going for some time, but we can now move on with certainty and ensure we are well equipped to compete at the levels now expected of a club like Leicester City."
Shakespeare had been a long time assistant at Leicester City and worked in Ranieri's backroom team as the club shocked the Premier League by winning their first ever league title in 2015-16.