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The centre-back is one of seven players who are leaving the Foxes following the expiration of their contracts.
Amartey won the Premier League, FA Cup and Community Shield during his time at Leicester and also played in the Champions League with the club.
However, the Foxes endured a disappointing campaign in the 2022/23 season, which ultimately led to their relegation to the Championship.
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A summer clear-out has Leicester release some players who were on huge wages following the expiration of their contracts.
A statement from the club said: “Youri Tielemans, Çağlar Söyüncü, Daniel Amartey, Nampalys Mendy, Ryan Bertrand, Ayoze Pérez and Tetê will all bring their spells at King Power Stadium to an end.”
It added: “Amartey and Mendy, meanwhile, both moved to Filbert Way in 2016, with the former making the first five of his near-150 appearances for City during the Club’s Premier League title-winning season.
“Amartey went on to feature for the Club in all domestic competitions, and three European campaigns.
“Mendy joined in the summer of 2016 and went on to make over 100 appearances, including 24 this past season, with his only goal for the Club proving a memorable one in a 4-1 win over Tottenham Hotspur in February.”
It remains to be seen which club Amartey joins next after leaving Leicester City.