Maguire has signed a five-year deal with the Foxes.
"After all the speculation surrounding him leaving I think it is great news for the club, the fans and above all for Harry," said Heskey, speaking at the launch of GOALS' Restart Game campaign in Leicester.
“He can now concentrate on his football because you don't need that in the back of your mind thinking about anything.
“You now have a contract playing for Leicester City and you are playing for the national team. Now he can just concentrate on football.
“It is a different era now and having the new owners they can afford to turn down offers like that.
“In my day they maybe wouldn't have been able to turn that sort of offer down. It shows the power of the club and that you can keep your best talent at the club and hopefully kick on and start being a force in the league."