As covered earlier in this very thread, Leicester offered Knockaert a new contract but he was behind RIYAD MAHREZ in the pecking order and wanted first team football, please stop perpetuating this drivel.
And just why was he behind Riyad Mahrez in the pecking order? Because Leicester realised they needed someone better and bought Riyad Mahrez to take his place perhaps? They may well have offered Knocky a contract, but only to be back-up/play second fiddle to Mahrez.
I know that Knocky had other issues, but that alone might well have been enough to make him say, 'stuff it' anyway. And from Leicester's point of view they'd replaced Knocky with a better player, and they'd 'let him go' without a fuss.