The 28-year-old Nigerian signed for The Toffees in 2007 in a £11.25 million deal from Middlesbrough.
The Nigerian, formerly of Portsmouth, has barely featured for The Merseysiders this term with only 13 appearances, scoring just the one goal.
Leicester? City manager Sven-Goran Eriksson was delighted with the club’s capturing of the striker, and believes it to be a real coup, believing that the striker will be a key player in the coming months.
The former England coach told Leicester City’s official website: “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 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 player said: “It means a lot to me to be joining Leicester City and to be given this chance. When I had the option to come here, I didn’t think twice. The manager is one of the greats in football history and to work with him presents a special opportunity for me.”