The target man is yet to score for City this season, however he has provided Nigel Pearson with a useful selection headache in attack, where he has impressed on five occasions so far this season.
Signing a contract extension that commits Kermorgant to the Foxes until 2012 shows that he is indefinitely in Pearson's long term plans.
Talking of the new deal, Pearson said: 'I'm sure the fans will see alot more from him. We hold him in high regard at the club, so it's a delight to prolong his involvement at the Walkers.'
Kermorgant is likely to be involved when the Foxes travel to Cardiff on Saturday for a clash with their play-off rivals who sit one place above City in 4th place in the Championship table.