The 26-year-old signed a new four-year deal with the Foxes to remain at the King Power Stadium until 2018, after coming through the club's academy to develop into an important player for Pearson's side.
"I'm very pleased to get his situation sorted out," Pearson told the club's official website. "I've been very keen to get Andy's contract situation sorted out for a while and now that that's been done, we can concentrate on the football.
"It's probably been a bit frustrating for Andy as he has not played as much as he would have liked but he's a very valuable member of our squad. His personal development over a number of years has been significant.
"It's always good to get your younger players to continue their run of form at the club. He stays in contention as he has done throughout his time here."
King has made seven appearances in all competitions for the Foxes this season.