The 42-year-old Spaniard spent two years of his playing career with the Rams from 2004-2006 during a successful spell, and joins with the well wishes of all at LCFC.
Inigo has coached in the Leicester City Academy since 2013 and has made a positive contribution in his time with the Club as a hard working and popular member of staff.
Inigo told LCFC.com:“I’ve had a great three years at Leicester City. Since I started, the players and the staff have been fantastic to me right from the foundation to the first team. I’ve learned so much as a coach so a big thank you to everyone.”
Leicester City’s Director of Football, Jon Rudkin, said:“On behalf of everyone at the club we would like to place on record our thanks to Ini for the outstanding work and contribution he has made during his time with the Club and we all would like to wish him well in this new challenge.”