The FA Cup holders will confirm plans next month ahead of a public consultation with the Foxes aiming to add an additional 8,000 seats to take the capacity to 40,000.
If the planning is successful, the King Power would become the 10th largest stadium among the current Premier League sides.
“Leicester City Football Club can confirm that initial plans for the expansion of King Power Stadium’s capacity to 40,000 and significant developments to the surrounding area will be shared with the public in August 2021,” a club statement read.
“The unveiling of initial plans, which are a key element of King Power International’s long-term commitment and vision for the football club, will be followed by a period of public consultation throughout the summer and early autumn.
“In addition to the increase in capacity, preliminary plans will include a 220-room hotel and a multi-purpose event and entertainment arena.
“There are also proposals for a new Leicester City retail space, residential and commercial space, and multi-storey car parking facilities – enhancements to the site that can further the evolution of both the football club and the city.”
The plans would see 8,000 seats added to the East Stand, with a new club shop, residential building and car-park also included in the proposals.
Leicester had an average attendance of 32,021 for the Premier League title-winning campaign of 2015/16 and currently have the 13th biggest capacity in the division.