The 25-year-old, who has impressed in the Foxes' title-winning campaign, made his international debut against the Netherlands in March.
He is one of 10 Premier League players selected by manager Didier Deschamps.
But in-form forward Hatem ben Arfa and Mathieu Valbuena, who was involved in a sex-tape scandal with international team-mate Karim Benzema, are left out.
Ben Arfa is one of eight players named in reserve along with the likes of Manchester United midfielder Morgan Schneiderlin and Lyon forward Alexandre Lacazette.
Real Madrid striker Benzema is being investigated for his part in an alleged plot to blackmail Valbuena and had already been told he would be left out.
Valbuena has struggled for Lyon this season, but Ben Arfa has scored 17 goals in 33 Ligue 1 matches for Nice.
Ousmane Dembele, who joined Borussia Dortmund from Rennes on Thursday, is another forward to miss out as Deschamps chose Arsenal's Olivier Giroud, Manchester United's Anthony Martial and Dimitri Payet of West Ham in a total of six attacking players.
Hosts France play Romania in the tournament opener on 10 June.
France squad for Euro 2016: Hugo Lloris, Steve Mandanda, Benoit Costil, Raphael Varane, Laurent Koscielny, Eliaquim Mangala, Jeremy Mathieu, Patrice Evra, Bacary Sagna, Christophe Jallet, Lucas Digne, Paul Pogba, Blaise Matuidi, Lassana Diarra, N'Golo Kante, Yohan Cabaye, Moussa Sissoko, Antoine Griezmann, Dimitri Payet, Anthony Martial, Kingsley Coman, Olivier Giroud, Andre-Pierre Gignac.
Reserve list: Alphonse Areola, Hatem Ben Arfa, Kevin Gameiro, Alexandre Lacazette, Adrien Rabiot, Morgan Schneiderlin, Djibril Sidibe, Samuel Umtiti.
Leicester City midfielder N'Golo Kante has been named in the France squad for their home European Championship.