Keown is on his way out of Leicester

But the Foxes denied sacking the 38-year-old after widespread reports that Keown had a bust-up with manager Micky Adams over the running of the team.

"Martin has been told he is free to leave the club on a free transfer," said a club spokesman.

"With the return of Matt Elliott and the emergence of Richard Stearman, the club are not in a position to guarantee Martin regular first-team football."

He added: "Therefore it is felt in the best interests of both parties that Martin is free to leave the club."

The former Arsenal defender is thought to have found it difficult to adapt to his new surroundings at Championship side Leicester after spending 11 years at Highbury.

And Leicester boss Adams admitted three weeks ago in an interview that Keown was having trouble settling in.

"Martin's learning that he's not at Arsenal any more and that he's not surrounded by the best players in the world," Adams said at the time.

"He is finding there are different ways to skin a cat and when you've been in a highly-successful operation as he has that might be frustrating."

Keown is believed to have felt standards were not high enough at his new club.

But Adams is reported to have reacted angrily to rumours that Keown had been criticising his coaching methods and managerial style.

Keown missed Tuesday evening's win at Gillingham and is said to have already been in touch with PFA chief executive Gordon Taylor about working out a possible settlement with Leicester should the club decide to release him.