Pearson's position has been the subject of speculation for months following a dismal run of results which almost saw the club miss out on the Championship play-offs.
The Foxes sneaked into the top six on the final day of the season courtesy of Anthony Knockaert's injury-time winner at Nottingham Forest, but their promotion dream was ended by Watford on Sunday in the most dramatic fashion.
Knockaert's injury-time penalty, which would have surely sent Leicester to the final, was saved and it was Watford who sealed a place at Wembley with a goal on the break just 20 seconds later.
Nigel Pearson: "It is a cruel game. That reality is an illustration of how tough it is to be successful.
"It is difficult to take at the moment and there will be a lot of reflection going on over the next few days and weeks.
"But we have to get on with it. We are still in a better position as a football club than we were a year ago.
"We have a lot to improve. It is about results ultimately and about us getting Premier League status.
"I know what needs to be done in the summer and I'm confident I will get the opportunity."
Source: Newcastle United Mad