Laxman has been signed up by the English county for the second half of the season as a replacement of Australia's Brad Hodge, though he needs a final approval from the Board of Control for Cricket in India (BCCI).
This is Lancashire's fourth overseas signing for the current season, with Laxman due to replace Hodge who returns to Australia for a scheduled training camp ahead of the ICC Twenty20 World Cup to be held in South Africa in September.
Laxman, Wisden Cricketer of the Year 2002, has 10 Test Centuries to his name, including 281 against in Australia in 2001 and has a Test Average of 42.41.
''I'm so thrilled to be signing for a great club like Lancashire for my first taste of County cricket. It's something I've wanted to do for a long time and hopefully I will play my part in a success season,'' Laxman was quoted as saying by the club website.
Commenting on this signing, Lancashire Cricket Manager Mike Watkinson said, ''We are going to be without Brad Hodge for what looks like a significant period towards the end of the season. We feel that Laxman will bring the quality needed at a crucial time of the season.'' ''I'm delighted that we have been able to secure a player of his pedigree, following what we hope will be a successful Test Series for him,'' he added.