The goalkeeper, who made 22 appearances in the Premier League for the relegated Tigers last season, will meet his team-mates in Hong Kong this week.
Jakupovic becomes the Foxes' third signing of the summer, adding to the arrivals of Harry Maguire and midfielder Vicente Iborra from Sevilla.
And, following the completion of his move, Jakupovic told the club's official website: “I’m very happy and excited that the deal is finally done.
"I’m very excited to be a part of something special here and I can’t wait for the first game.
"I knew from the beginning that it will be difficult for myself because Kasper [Schmeichel] is one of the best goalkeepers in the Premier League.
"I’m going to fight and I’m here to push. A healthy competition is always good and that’s only a positive thing. For sure, I’ll wait for my chance but I am here and I’m very excited."