The Championship club axed Sven-Goran Eriksson on Monday after a mediocre beginning to the season and Lennon says he would love to see the ex-Foxes two-time League Cup-winning coach back at the helm at the newly named King Power Stadium.
"I think the only thing that might put him off is that he'd be going back," Lennon said.
"The old adage is you should never go back, but it's a club going places with the finances of the new owners.
"They, obviously, have been disappointed with the start they have made, but Martin has a great connection with the club in the past and it wouldn't surprise me if he got the job because he's been out of the game too long.
"It would be good to see him back."
Leicester's ambitious Thai owners pumped around £13million into a plethora of new signings in the summer but Eriksson failed to gel them together and was given the flick after 13 matches of the current campaign.