"On the back of the success we have worked so hard to achieve, I have always been confident that my future would remain here," the 50-year-old told the Foxes' website (www.lcfc.com).
"I feel very proud to be the manager of a club with genuine ambition, a clear direction in which it wants to go, and loyal owners that are prepared to support its development."
Pearson took over at the King Power Stadium in 2011. Thai-owned Leicester were previously relegated from the Premier League in 2004.
(Writing by Stephen Wood, editing by Mark Meadows)
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