Pearson had a year remaining on his contract at the Walkers Stadium
Relegated Hull City have confirmed Leicester City boss Nigel Pearson as their new manager on a three-year deal.
Craig Shakespeare and Steve Walsh will join Pearson as his assistants at Hull.
Leicester chairman Milan Mandaric said: "Nigel's done a fantastic job. It would have been wrong of us to deny him the chance to speak to another club."
Hull City's head of football operations Adam Pearson said: "We are delighted to welcome a manager of Nigel's experience and calibre to the club."
Pearson, 46, had a year remaining on his contract at the Walkers Stadium, but BBC Radio Humberside understand that compensation between the two clubs has been agreed, following the Tigers' approach for Pearson last week.
"We feel it is a real coup for Hull City and that Nigel is the best man to mould the existing squad into a competitive Championship squad," former Derby chairman Pearson continued.
Nigel has put together the foundations of a strong squad and it is now up to us to find a manager to build on those foundations
"Nigel had two outstanding seasons at Leicester City and I feel sure that this experience and winning formula will ensure the very best chance of bringing success back to the club."
The ex-Southampton manager led Leicester to the League One title and the Championship play-offs in his two years at the club, after taking over from Ian Holloway in June 2008.
Mandaric added: "After speaking to Nigel, we have reluctantly agreed that if he wished to pursue this opportunity at Hull, we would permit it.
"I am deeply grateful to him for everything he has done for the club. He has put together the foundations of a strong squad and it is now up to us to find a manager to build on those foundations."
Nottingham-born Pearson, who started his league career at Shrewsbury Town after being signed from non-league Heanor Town, made his name first with Sheffield Wednesday, then under Bryan Robson at Middlesbrough.
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