The Foxes officially let go out of contract stars Youri Tielemans, Daniel Amartey, Ayoze Perez, Caglar Soyuncu, Papy Mendy, Ryan Bertrand and loanee Tete.
The 2015/16 champions are preparing for a major rebuild after dropping into the second tier on the final day of the Premier League.
They need to cut costs with a wage bill at £182million after losing £92.5m in the last financial year.
But the Midlands outfit still hope to keep out of contract skipper Jonny Evans,35, who joined in 2018. City have also exercised an option to extend the contract of Hamza Choudhury for a year until 2024.
The club are yet to decide whether to keep interim boss Dean Smith after relegation or go for a new man with contenders including Steven Gerrard and Graham Potter.
Aston Villa meanwhile are interested in Tielemans as they step up plans for a major recruitment drive after qualifying for Europe.