Premier League newcomers Hull City were among the clubs reportedly interested in signing the Denmark international, but the Foxes held firm.
Schmeichel has now entered the third and final year of his deal at the King Power Stadium and he is honoured that the club think so highly of him.
"There were some clubs who wanted to get me," The 26-year-old told BT.
"But Leicester told me that it didn't matter how good the offer was, because I was not for sale."
"That the club is willing to let my contract expire is a big compliment."
Schmeichel is looking to enjoy a good season in the Championship to boost his hopes of becoming Denmark's No.1, as he accepts that he is currently behind Stephan Andersen in the pecking order at international level.
"I would like to play," he added. "Everyone wants to do that. Morten (Olsen) has declared that Stephan is number one and I accept that.
"Stephan has always done well for the national team, therefore there is no reason why he should not play."
"All I can do is to do my best in training and take the chance in case I get it."