With a chance of reaching a Wembley cup final, on 17 February 1997 Ullathorne decided to return to the Premier League to play for Leicester City in a deal worth £650,000. Ullathorne's hopes of playing in a cup final were dashed after only eleven minutes of his debut against Wimbledon in a League Cup semi-final first leg, when he suffered a broken leg and a dislocated ankle and was substituted. His teammates went on to win the 1997 Football League Cup Final in his absence.