Leicester City F.C. succeeded Jimmy Bloomfield in 1977. City were relegated at the end of the 1977–78 season and McLintock resigned. Jock Wallace resumed the tradition of successful Scottish managers (after Peter Hodge and Matt Gillies) by steering Leicester to the Division Two championship in 1980. Unfortunately, Wallace was unable to keep Leicester in Division One, but they reached the FA Cup semi-final in 1982. Under Wallace, one of City's most famous home-grown players, Gary Lineker, emerged into the first team squad. Leicester's next manager was Gordon Milne, who achieved promotion in 1983. Lineker helped Leicester maintain their place in the First Division
Leicester City F.C. in European football since the clubs last met back in 1961, the Madrid club won the first leg 2–1, at their Vicente Calderón Stadium. Leicester lost the home tie 2–0 and the Midland club were eliminated. Juninho - who was in the Middlesbrough team beaten by City in the League Cup final - scored in both legs, while Ian Marshall was the sole Leicester goalscorer. O'Neill's Leicester side won the League Cup again in 1999–2000, this time beating Tranmere Rovers in the Final, the last to be held at the old Wembley Stadium. This saw Leicester awarded a place in the UEFA Cup,