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Kelly had offered Asaba a short-term contract, but Asaba rejected the terms and has decided to leave the club.
Kelly said: "Carl has been working here for a couple of weeks on trial. We made him an offer of a short-term contract but couldn't agree terms, so Carl has now left us. We wish him luck wherever he ends up."
Asaba would have been expected to battle alongside Matt Fryatt, Iain Hume, Elvis Hammond and Chris O'Grady for a place in the Foxes' starting line up.