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Cooper left Forest in December 2023 and replaces Enzo Maresca after his departure for Chelsea at the start of June.
"I am really excited and proud to be appointed Leicester City’s first-team manager," said Cooper.
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Hide Ad"This is a fantastic club with a rich history and passionate supporters. I am excited to work with such a talented squad and I’m looking forward to the challenge of achieving our shared ambitions in the Premier League."
Elsewhere, Forest have signed Marko Stamenić from Red Star Belgrade.
The 22-year-old has joined the club on a five-year deal and will spend the 2024/25 season on loan at Olympiacos.
Stamenić arrives having played in Denmark and Serbia’s top divisions with Copenhagen and Red Star respectively.
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Hide AdThe midfielder made 23 senior appearances for Copenhagen, lifting the Danish Cup in his final season in Denmark before making the move to Belgrade.
Stamenić made 35 appearances for Red Star last season, including four times in the UEFA Champions League, and played an integral part in helping the club to the Serbian SuperLiga and Serbian Cup double.
A 15-time New Zealand international, Stamenić made his debut for his country against Curaçao in September 2021, scoring his first international goal against Qatar last June.
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