The 39-year-old full-back admits he will not be looking to play too often for the Foxes and, although he is still registered as a player, his predominant focus will be as a development coach around the first team.
Of his dual role as player and coach, Powell told the Leicester Mercury: "I think I've ended up with the best of both worlds.
"I've got all the experience and knowledge and now it's about imparting that to others, but I feel I'm suited to it. So I'll do it again this season, but I guess it's a bit more official.
"When I've travelled with the team, I've spoken to the lads quietly. I would take a couple of the younger boys to one side and have a chat."