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He joins a club who reached the Championship play offs last season having won promotion a year earlier and they are expected to be one of the promotion chasers again this coming season.
Sousa arrived in English football as QPR boss, and like most who went in there during the Briatore days he didn't last very long. Last summer he replaced Roberto Martinez at Swansea and now leaves the South Wales club looking for a new boss just five weeks before the start of the new season.
Leicester owner Milan Mandaric said on his appointment: "I am delighted to acquire a manager of such great calibre. Paulo has an excellent reputation as both a player, and now as a manager, and I believe he is the right man to take our club forward."