English Premier League club Leicester City on Tuesday announced the dismissal of manager Nigel Pearson just days after signing Japan international striker Shinji Okazaki from Mainz.

"The board of directors recognizes the success Nigel has helped to bring to Leicester City. However, it has become clear to the club that fundamental differences in perspective exist between us," the club said in a statement.

"Regrettably, the club believes that the working relationship between Nigel and the board is no longer viable. Craig Shakespeare and Steve Walsh will take charge of first team duties while the Club begins its recruitment of a new manager."

Pearson secured top-flight survival with seven wins in the last nine games this past season and finally signed Okazaki on a four-year deal thought to be worth €10 million on Friday after having previous bids for the forward turned down.

But he had endured a fractious relationship with his board during the past two years and his son James was sacked earlier this month along with two other players following a racist sex tape filmed on a goodwill post-season tour of Thailand.