The Belgian was at United for three-and-a-half years but sought a move this summer after conceding he was unlikely to break into Sir Alex Ferguson’s team in the near future.
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De Laet spent the last two seasons on loan with Sheffield United, Preston North End, Portsmouth and Norwich in a bid to impress the United boss, but is now seeking a regular starting role.
De Laet told Foxes Player: "I needed to be playing regular football, but also to settle down somewhere for some security for my family.
"I've been out on loan for the last two seasons and all over England so I just want to settle down in Leicester now, find my feet and hopefully achieve good things."
The full-back has been joined at Leicester by Matty James - a graduate from the Red Devils' academy who signed for the club on the same day - and is optimistic about his future with the Foxes.
"I spoke with the manager [Nigel Pearson] and he's looking forward to this season as much as anyone," De Laet added.
"He told me the club wanted to go places and I think they want to go to the same places I want to be so it's a perfect match."
The 23 year-old made just six first-team appearances for United but was an important part of the reserve team squad.
And De Laet insisted his time in the academy will serve him well in the future, praising the system in place at his former club.
He added: "United have one of the best youth setups in the world, so it was good for me to go there and not only train with the first team, but also with the reserves.
"The coaches taught me a lot, but there's only so much you can learn from training, you've got to get out there and play as well and that's what I'm looking forward to now."