The 64-year-old Italian joined the Midlands side just prior to the start of last season after former manager Nigel Pearson was sacked and led the Foxes to their first English top-flight title as they stunned the Premier League’s established elite.

“Leicester City Football Club is delighted to announce that its first-team manager, Claudio Ranieri, has signed a new contract with the Premier League champions,” the club statement said.

Leicester were 5,000/1 to become champions of England when Ranieri took charge, yet they lost just three league games all season and won the title by 10 points.

“From the moment I talked to the owners about their vision for Leicester City, I knew it was something I wanted to be part of for a long time,” Ranieri told the club’s website on Wednesday.

“The energy that exists at this club — from the owners and the staff to the players and supporters — is something very special. I am very happy and proud that I will be part of it for years to come,” he added.

“Last season, that spirit and our hard work helped us to achieve something magical.

“If we can continue to work hard, maintain our passion and continue to fight with all our hearts, I am sure we can continue to be successful together.”

Leicester vice-chairman Aiyawatt Srivaddhanaprabha said: “Twelve months ago, we brought to Leicester City a man whose knowledge and experience, we felt, could lead us into the next phase of our long-term plan.

“What he would go on to help us achieve, in the time we have achieved it, has been beyond anything we could have anticipated.”

Leicester’s Premier League success gave Ranieri a first top-flight title in a managerial career spanning three decades and including second-placed finishes in England (Chelsea), Italy (Juventus and Roma) and France (Monaco).

The Foxes, beaten 2-1 by FA Cup-holders Manchester United in the Charity Shield at Wembley last weekend, begin the defence of their Premier League title away to Hull on Saturday.