The Foxes have tied the 21-year-old to a five-year contract, having fought off competition from the likes of Southampton and Everton.
Maddison joins after an impressive season at Norwich, in which he scored 15 goals and was named in the PFA’s Championship Team of the Year.
Speaking to LCFC TV, Maddison said: "I’m delighted. I’m really happy to be here. I had a good chat with the manager about football and how he wants me to play, how he likes to play and I was sold.
“We talked about the type of player I am, how I’m going to fit into his style of play and everything sounded really promising. I haven’t looked back since that phone call.
Leicester manager Claude Puel said: "James is a wonderful player who is one of the most exciting young talents in English football.
"He’s a young player who can create things in the attacking third and will give us even more possibilities in the squad. Of course, he has good ability and also good potential to develop even more, which is exciting for the team and for the supporters."
Both Southampton and Everton were in the hunt for Maddison’s signature but the player, born in Coventry, opted for a move to the King Power. It’s understood the close proximity to his family was a factor in his decision-making.
Maddison is Leicester’s third signing of the summer, following Jonny Evans and Ricardo Pereira.
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