There were three changes to City's line-up following last week's loss to Nottingham Forest, which did not stop the Club's youngsters from qualifying for the Last-16 of the Premier League Cup.
Goalkeeper Viktor Johansson came in for Max Bramley, while midfielder Callum Wright replaced Khanya Leshabela and Ryan Loft took Louis Ramsay's place in Manchester.
However, Leicester were behind inside just five minutes as Adrian Bernabe latched onto an incisive pass from Ian Poveda, on the right wing, to give the hosts the lead from close range.
City were unfortunate not to level the scores swiftly when Daniel Grimshaw's punched clearance landed at the feet of Lamine Kaba Sherif, but his effort was off target.
Midway through the first half, Johansson was called upon to make an outstanding reflex save to stop a header from Nabil Touaizi, following a curling cross from Bernabe.
Lukas Nmecha was also a threat for the home side and his low drive clattered the post shortly afterwards, before Johansson denied Taylor Richards in a one-on-on situation.
In the second period, both Admiral Muskwe and Wright tried their luck from distance, sending their efforts wide, on what was becoming a frustrating outing.
The visitors almost scored the equaliser with 11 minutes to go, but Kiernan Dewsbury-Hall’s powerful strike was parried away expertly by Grimshaw.
As a result, the Foxes remain fourth in Premier League 2 Division 1 on 27 points, seven behind leaders Everton.
They next entertain Tottenham Hotspur at Holmes Park in Premier League 2 on Friday (7pm GMT kick-off) - a match will be available live and for free on LCFC TV.
City: Johansson, Hughes (c), Ughelumba, Pascanu, Shade (Heaven 35'), Ndukwu (Tavares 70'), Wright, Kaba Sherif, Dewsbury-Hall, Loft (Leshabela 56'), Muskwe
Subs not used: Bramley, Meite
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