The 25-year-old joins the Foxes on a four-year deal, having fallen further down the pecking order at Liverpool due to the recent world-record arrival of Roma goalkeeper Alisson.
Ward found regular game time at Liverpool impossible to come by, despite the mixed form of both Loris Karius and Simon Mignolet. However, he has picked up loan experience at Aberdeen and Huddersfield Town, and is also a senior Wales international.
Speaking to lcfc.com, Ward said he is 'delighted' to have signed for Claude Puel's Foxes and that he is 'really looking forward' to the future.
“I’m delighted to be here and I’m really looking forward to the future with this Football Club," he said. "I’ve come here to develop my all-round game and hopefully help deliver some more success. The Club has had that in recent years and hopefully there’s more to come in the future."
Meanwhile, Leicester boss Claude Puel is delighted to have added further competition for places in his goalkeeping department, with Ward set to compete for the number one shirt against Kasper Schmeichel and Eldin Jakupovic.
“I’m very happy to welcome Danny to Leicester City Football Club," Puel said. "Pre-season preparations have started well for us and with Danny joining the group, it will give us even more competition in the squad, which is crucial for us ahead of what will be another very competitive Premier League campaign.”
Ward becomes Leicester's fourth signing of the summer, following the arrivals of Porto right back Ricardo Pereira, West Brom captain Jonny Evans and England Under-21 international James Maddison from Norwich City.