The 28-year-old star joins the Foxes until the end of the season on an initial loan deal, with a view to a permanent move to the Walkers Stadium in the summer.
Yakubu follows Ben Mee and Sol Bamba as Eriksson's third signing of the January transfer window, as the club sends out a statement of their ambitions, by capturing such a high-profile Premier League and international star.
Eriksson said: "Yakubu is a tremendous signing for Leicester City. He will bring pace, power and experience to the club.
"He has captained his country, played in major competitions and is a first-class footballer, who I am certain will help us to achieve our aims of moving up the npower Championship.
"We are delighted that he is joining us until the end of the season and I'm sure that the supporters will enjoy watching him in action."
The Nigerian international has earned over 50 caps for his country, scoring over 20 goals and has lifted the Israeli Premier League title twice with Maccabi Haifa and the Football League Division One (now npower Championship) title with Portsmouth in 2002-03.
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