Smith, served at the club between 1929 and 1949, scoring 85 goals and racking up 586 appearances for City. He was seen as one of clubs most loyal servants and the club are now looking into ways Sep can be remembered by all fans at the Walkers Stadium.
After hearing the sad news, Alan Birchenall said: "Sep was a real character and he will be sadly missed by everyone connected with Leicester City Football Club".
Sep was present for the final game at Filbert Street and he walked out onto the Filbert Street turf to say a fond farewell to the great ground and was applauded by all City faithful present at that day.
"He epitomised everything that this club is about. We have a strong sense of tradition here at Leicester City and a player of Seb's calibre is a big part of that", Birchenall added.