The 26-year old French-born Ivory Coast left-back has joined the Foxes as a free agent after leaving Tranmere Rovers following a four-year stint.
Bakayogo, who has also spent time with Paris Saint-Germain and Millwall, was delighted to be getting a chance in the Championship with a club like Leicester.
"This is a big club and a big challenge for me, stepping up into the Championship. I've taken the chance, I hope to have a good season this year and do well for the team," he told the club's official website.
"The Championship is a new league for me so I will have to work hard to catch up to the pace, but I'm looking forward to working with everyone."