The Foxes have been on the hunt for a new boss since parting ways with Brendan Rodgers following their defeat to Crystal Palace over the weekend.
Potter, who was sacked by Chelsea just a few days ago, has decided to take a break from the game and declined the opportunity to take over at the King Power Stadium.
It seems that the 47-year-old Englishman is not interested in making a swift return to management.
Leicester City have been long-time admirers of Potter, who previously managed Brighton & Hove Albion.
The former Premier League champions reached out to his representatives but were unsuccessful in their attempts to lure him to the East Midlands.
Potter took the Chelsea job in September 2022, succeeding Thomas Tuchel, who was dismissed by Blues co-owner Todd Boehly.
He made a promising start to his tenure at Stamford Bridge, winning five of his first six matches in charge and remaining unbeaten in his opening nine games.
However, things quickly took a turn for the worse as Chelsea’s form dipped and they suffered disappointing exits from both the FA Cup and Carabao Cup at the hands of Manchester City.
The team’s regression down the Premier League table ultimately led to Potter’s dismissal, following a 2-0 defeat at home to Aston Villa in his final game in charge.
It is unclear what Potter’s next move will be, but it seems he will be taking some time off from football to reflect on his experiences and recharge his batteries.
His time at Chelsea may have been short-lived, but he will undoubtedly be in demand in the future due to his tactical nous and ability to get the best out of his players.
For now, Leicester City will have to continue their search for a new manager, with several high-profile names being linked to the job.
The Foxes will be hoping to make a swift appointment in order to get their season back on track and mount a challenge for a top-four finish in the Premier League.