Schmeichel left City and the Premier League in 2009 to join Notts County in League Two and he believes the move helped propel his career.
The Dane is preparing for life in the Premier League with Leicester, who face Everton at home on Saturday, and Schmeichel has no regrets about leaving City despite their success in recent years.
"It was the best thing I've ever done. The best decision I ever made," said Schmeichel.
"I did not play for Manchester City and I had no prospects to play, so there was no reason to stay.
"I came to Notts County and I loved being there. It was great to play a full season and win the League Two championship.
"Leeds was not as good an experience, but then I came to Leicester, and it has only been positive.
"I signed a four-year contract with Leicester this summer so my future for the next years is reasonably set.
"My ambition right now is continue to play and hopefully stay in the Premier League."
The 27-year-old believes playing in the Premier League with Leicester will help him to emerge from the shadows of his dad Peter - a Manchester United and Denmark legend.
"That is something I have lived with my whole life," added Schmeichel. "There are a lot of people who like to talk about it but it is not something that means a lot to me.
"The only thing I do is to try to play my own game and be myself.
"There is no one with higher expectations of me than myself. I cannot control other's expectations."