The 32-year-old joined the Foxes after a six-year spell with Blackpool back in September 2013, and made 23 appearances during City’s title-winning campaign.
Taylor-Fletcher found the back of the net three times for the Foxes last season, most recently an eye-catching finish in a 2-0 win over former club Huddersfield Town on 26 April.
A Championship promotion winner with Blackpool, Taylor-Fletcher already has a season of Premier League experience under his belt from 2010/11 – a campaign during which he hit the Tangerines’ first Premier League goal in a 4-0 opening day win at Wigan.