The goalkeeper has extended his stay with the newly-promoted Foxes by a further four years.
The shot-stopper had been in discussions with the newly-promoted Foxes for some time and officially put pen to paper on Wednesday afternoon.
The Dane was an ever-present last season, and the new deal will keep him at the King Power stadium until 2018.
Speaking to the club's official website, he explained how happy he was to finally agree terms with the club:
He said: “I’m tremendously proud to sign for this great club again."
"Leicester has felt like home since the day I arrived here three years ago and always felt like the right choice for me. I was always confident that my future would be sorted once we achieved our objective of winning promotion to the Premier League and I'd like to thank the owners and the manager for making it happen."
Former Manchester City youngster Schmeichel also revealed his eagerness to test himself in the Premier League with Nigel Pearson's side next term.
"I can't wait to play for this club in the Premier League," he added. "With the management team we have and the squad we already have here, plus new additions arriving, we've got a great chance of having a great season."
Schmeichel conceded just 43 goals last term, the third best in the Championship, and Pearson said he was delighted that the keeper had pledged his future to his side.
"Kasper has been as driven as anyone to help take this club back to the Premier League," said Pearson. "And now that we have achieved that, he fully deserves the opportunity to play at that level."
"A player of his quality will have had a number of options available to him but he wants to remain part of what we're doing at Leicester which says a lot for where we're going as a football club".