The Italian led the Foxes to a stunning Premier League title success this season, finishing 10 points clear at the top.
Ranieri only joined the club last summer, following the dismissal of Nigel Pearson and have overseen an incredible campaign, where they lost only three times.
The 64-year-old becomes the second non-British manager to win the prize after Arsene Wenger.
Speaking at their victory parade, Ranieri urged Leicester supporters to start looking forward to the Champions League.
“Next season we will be in the Champions League — we are still dreaming.
“Keep dreaming. Do not wake up!”
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