Leicester chairman Aiyawatt Srivaddhanaprabha has cleared the club's outstanding £194m debt to parent company King Power International (KPI).
A debt-to-equity transfer to KPI was completed to relieve the club of its outstanding debts.
Leicester said the move was evidence of "KPI's commitment to supporting the club's long-term sustainability".
"These loans have been provided by KPI to the club over the last four years to fund the construction of the club's world-class new training ground at Seagrave and to continue to support the club's investments into its squad and women's football during the Covid-19 pandemic," the club said in a statement.