The Ghanaian international, who can play as a forward and has been used as a left back, was close to joining Manchester United last year after a lengthy trial at Old Trafford.
However, the move did not materialise and a source at Swansea told Sportsmail that the Foxes rejected an enquiry despite keen interest.
Schlupp is contracted to Leicester until June 2015.
Schlupp scored a hat-trick on his Leicester debut when the Foxes beat Rotherham 4-1 in the League Cup in August 2011.
He represented Germany at Under 19 level but is a full Ghana international.