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Former Fox Damien Delaney made a last ditch challenge to stop Leicester forward Mark De Vries getting away, but from there on it was City who looked the most likely to score in the first half, hitting the woodwork four times.
In the 15th minute, Stuart Elliott chipped in from the left for Jason Price to head at goal, but it hit the top of the bar and went over.
Two minutes later, Craig Fagan won a free kick. Andy Dawson crossed it in but Damien Delaney also found the goalframe.
It was the same story 6 minutes later when Dawson's free kick was headed against the post by Craig Fagan.
Leicester were saved by the woodwork again when Elliott hit the bar from Nick Barmby's 29th minute corner.
The last chances of the half were the away side's though, with Boaz Myhill pulling off two world class saves from De Vries.
Amazingly it remained goalless at half time, but the breakthrough was made 5 minutes into the second half. Price got ahead of his marker to head on Dawson's corner, and Fagan was in place to turn it in from close range.
The visitors had the better of the second half though, and the North Stand goalframe was rattled again by David Connolly's header.
City almost broke through again though in the 59th minute. Fagan played the ball through for Price to chase, but Robert Douglas rushed out of his box to deny him.
Tigers keeper Boaz Myhill required the physio's attention in the 61st minute after challenging De Vries in the air but was able to carry on. Four minutes later, he was picking the ball out of his net. A free kick was played out to Stearman to cross in for the unmarked centre back Patrick McCarthy to make it 1-1.
Danny Coles headed one off the line while Myhill had to make another superb save from Connolly.
City were denied an injury time penalty after strong claims that Price's run was halted by a defender's arm, but the referee pointed for a corner instead.
Three points had looked on the cards for City when Fagan opened the scoring, but an improved second half performance from Leicester justified their point.
City line-up (4-4-2): Boaz Myhill; Ryan France, Danny Coles, Damien Delaney, Andy Dawson; Jason Price, John Welsh (Stuart Green, 85 mins), Ian Ashbee, Stuart Elliott; Craig Fagan (Curtis Woodhouse, 72 mins), Nick Barmby (Ben Burgess, 67 mins).
Un-used subs: Sergio Leite, Scott Wiseman.