Morgan, 28, takes on the captaincy at the start of his first full season with the Foxes, having joined the Club from Nottingham Forest during the January transfer window.
City boss Pearson said: "Wes has shown great leadership qualities throughout his career and his experience and strength of character have been real assets to the squad since he joined us in January.
"As well as being an exceptional player, he is an individual everybody in the squad respects greatly and a very good communicator on the pitch. I am sure he will thrive on the responsibility of leading the team next season."
Morgan has amassed 427 career appearances during 10 years a professional.
"It's a tremendous honour and something I'm extremely proud to be asked to do, because there are a number of my team mates that would be just as capable of doing the job," Wes told lcfc.com.
"I'm fortunate that I'm part of a talented squad that is full of leaders and big characters, which should stand us in good stead as a group for the new season."