Fleetwood Town striker Jamie Vardy, 25, scored 34 goals in the Blue Square Bet Premier last season to fire them into League Two for the first time in the Lancashire club's history.
City manager Nigel Pearson: "There were a number of clubs vying to secure Jamie's signature, so it's very pleasing that we have been able to bring him to Leicester City.
"He will definitely help to take us forward.
"He has built an excellent reputation for himself through the goals he has scored at non-league level and, having studied his progress closely for some time, I have no doubt he will successfully make the step up to the Championship."