"He's an authentic legend of this club", City manager Pep Guardiola said.
Despite being tied 1-1 at halftime, Sergio Aguero's second-half performance alongside Kevin De Bruyne's three assists catapulted the hosts backs to winning ways after a draw last time out against Burnley.
The Sky Blues started the scoring in the third minute.
Things got better and better for City as Aguero made it 3-1 on 53 minutes again from an assist from De Bruyne. This time it was Sergio Aguero who got a tap in from another wonderful Kevin De Bruyne cross, finding a tiny gap between the Leicester centre halves to find the feet of the Argentinian.
No player in Europe's top five leagues has assisted more goals than De Bruyne this season, with the Belgian moving one clear of Paris Saint-Germain's Neymar (11). For all their domination however the home side struggled to create much penetration inside the first 20 minutes, and Jamie Vardy looked risky on the counter.
Mahrez returned as a substitute for Leicester after more than a week in self-imposed exile following the collapse of a move to City, but he could do little to stop Guardiola's rampant side.
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As Vardy reached the edge of the area he connected with a firm shot and a slight deflection off new City defender Aymeric Laporte took it flying past Ederson for an equalizer.
The home side, shell-shocked by Leicester's unexpected equalizer, were soon back on the prowl as they attempted to restore their lead.
And the Englishman had to wait just two minutes for his breakthrough, ghosting into the box to get onto the end of a fabulous De Bruyne cross to poke home from close range.
Leicester made a change at half-time, bringing on Danny Simpson in a change of shape intent on disrupting the predictable style of the game.
Leicester winger Riyad Mahrez, who nearly joined Manchester City at the end of January, received an ovation from both sets of fans as he returned from his self-imposed exile to make an appearance as a second-half substitute.
Aguero scored his second five minutes later from, you guessed it, a De Bruyne pass. It's a hat-trick for Aguero.