City defender Aleksandar Tunchev has today agreed terms on a new one-year contract with the Foxes.
The Bulgarian defender, 30, will subsequently join Championship side Crystal Palace on a one-month loan, subject to Football League approval.
Tunchev extends his three-year stay with City following a successful summer at King Power Stadium, during which he has featured regularly in the Club's pre-season programme.
His first three seasons with the Club were severely interrupted by injury but, after returning to fitness towards the end of last term and impressing during pre-season, the Bulgarian will have the chance to turn his fortunes around on Filbert Way.
The loan spell with Crystal Palace, which runs up to September 1, should allow the former CSKA Sofia centre-back the chance to build his match fitness before challenging for a place in Eriksson's starting eleven.
Crystal Palace begin the npower Championship season at newly-promoted Peterborough United on Saturday.