The 31-year-old's contract is due to expire this summer. It's been gathered that he will officially leave the club once he completes his current loan spell with Huddersfield in the Championship.
King, joined the club's academy at the age of 16, has made 378 appearances for the club in competitions.
King was part of their Premier League title win in the 2015-16 season under Claudio Ranieri.
Leicester chairman Aiyawatt Srivaddhanaprabha said: 'I'm so grateful to Andy. He is the only player still here that was with the club when King Power took over 10 years ago.
'He's been through everything with us and is an amazing guy. He's been a massive part of what the club has achieved in that time and earned the respect of so many people.'
Leicester have confirmed the club will host an event to mark King's service 'when it is safe and possible to do so'.
'Few players have committed themselves to the club's cause over such a sustained period, served through such a spectrum of experiences, or contributed to such change, as Andy has in the last 16 years,' read a club statement.
'That, coupled with the success he helped the club to achieve on the pitch, marks him out among the greats to have pulled on the shirt.
'He leaves with the thanks of everyone at the club for an immeasurable contribution.'
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