Marshall has penned a three-and-a-half-year contract with the Foxes and is the club's second signing in as many days following the capture of defender Wes Morgan from Nottingham Forest.
The highly-rated 20-year-old, who would have been out of contract at Stoke in the summer, impressed during a loan spell at Sheffield Wednesday this season where he scored five goals in 22 appearances for the League One club.
Stoke had hoped he would extend his stay in the Potteries, despite not making a first-team appearance for Tony Pulis' side, but they have decided to sell after failing to agree a new deal.
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