The Denmark international, 26, has been the subject of considerable media speculation this summer but has his sights firmly fixed on the Foxes and winning promotion to the Premier League after play-off heartache last term.
He told the club website: "It's been a strange summer, coming to terms with what happened to the team at the end of last season and not getting much of a break due to internationals, but there has never been a thought in my mind that I wouldn't be coming back to Leicester.
"I've said many times before that I enjoy playing for this football club, I enjoy coming to work every day and I want to be successful here.
"You hear speculation of things you're supposed to have said or done like handing in transfer requests and it's just ridiculous. I've never said I wanted to leave Leicester.
"Like every professional, I want to play at the highest level, but I want to do that with Leicester and, with the players, management, staff and fans we have here, I know we can achieve that.
"It's a big season coming up for us now. We need to make sure we're focused on what we want to achieve and work harder than anyone else to make sure we achieve it."
After finishing his season late due to playing for his country, Schmeichel will join Nigel Pearson's City squad at their training camp in Austria in mid-July and expects to join a squad galvanised by the final defeat at Watford.
He added: "The way last season ended was painful for all of us, but that kind of experience will make us stronger as a group and I'm sure we can come back better for it this season.
"There are some big characters in our dressing room - it's a squad full of players that want to do well for this club and mount a big challenge next year. The Championship is always a tough league to do well in, but we know as a group what we're capable of.
"We've seen the fixtures come out, which normally acts as a little jolt that the season is just around the corner, and when Middlesbrough comes around on August 3, we'll be ready."