On Tuesday, Shakespeare will lead the Foxes into action in the Champions League last-16 tie second leg at home to Sevilla, seeking to overturn a 2-1 deficit.
On their official website (www.lcfc.com), Leicester announced that Shakespeare would continue to be supported by first team coach and goalkeeping coach Mike Stowell and the club's existing team of backroom staff for the rest of the campaign.
Vice Chairman Aiyawatt Srivaddhanaprabha told the website: "Craig's skills as a coach and the high regard in which he is held by everyone at the Club were well known to us. We always knew the team would be in good hands when we asked him to take charge a fortnight ago.
"He has initiated the type of positive response that we hoped change would bring, showing great leadership qualities and composure under considerable pressure to produce two very important results.
"We have asked him to continue to lead the team this season and we are very happy that he has accepted."
Shakespeare, 53, joined Leicester's coaching staff as assistant to Nigel Pearson in 2008, spending a season with Hull City in 2010-11 before being brought back to the King Power Stadium by the Srivaddhanaprabha family in 2011.
Shakespeare, who had been hoping for the appointment, has received his reward for the way the team has been galvanised after Ranieri was dismissed less than a year after he guided them to the unlikeliest of title triumphs.
(Reporting by Ian Chadband; Editing by Toby Davis)
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