The 25-year-old has endured a difficult 18-month period on the books of the former Premier League champions, failing to establish himself as a first-team regular under three separate managers.
With the Foxes plying their trade in the Championship last season, it appeared as if Souttar would be given the opportunity to impress in the starting XI.
However, such chances never materialised for the centre-back, who found himself firmly behind the likes of Jannik Vestergaard and Wout Faes in Enzo Maresca's pecking order.
Souttar made only three Championship appearances for Leicester during 2023-24, starting just the single match, as the East Midlands side eased to the title.
Sheffield United's Wilder hints at permanent Souttar move
Deemed surplus to requirements at the King Power Stadium by Steve Cooper, Souttar is currently on loan at Sheffield United in the Championship for the season.
Speaking to the Sheffield Star, Blades boss Chris Wilder hinted that the centre-back could have a permanent future at Bramall Lane past the conclusion of this term.
"I think every loan is always a view to, really. I think Souttar coming in here is a loan for him to play well here and if we like what we see... and if we do not like it then someone else potentially will like it," said Wilder after his side's 2-0 win over Hull City.
"With the older boys that is more the case than the likes of Alfie Gilchrist or Jesurun Rak-Sakyi, who have come and play competitive Championship football and will learn from the experience."
Despite a two-point deduction imposed by the EFL, Souttar and Sheffield United have enjoyed a productive opening to the season and sit sixth in the Championship table following a five-match unbeaten start.
Feeling like a footballer again
After a troubling time on the fringes of the Leicester squad, Souttar is now a valued and important member of the team at Bramall Lane for Sheffield United.
The 25-year-old recently stated that he "feels like a football player again" after gaining the trust of Wilder and receiving consistent game time in Yorkshire.
Souttar has started three Championship matches to date, earning more minutes than he received under the cold-hearted rule of Maresca at Leicester last campaign.
Impressive displays for the Blades saw the centre-back called up to the Australia squad for World Cup qualifiers versus Bahrain and Indonesia earlier this month.