The former Manchester United man could face a prison sentence after being found guilty on Wednesday of assaulting his ex-girlfriend in December.
The Foxes finish their season at home to QPR on Sunday having secured their status in the Barclays Premier League.
Simpson denied the charge at Manchester Magistrates Court on Wednesday but was convicted and will be sentenced next month.
A club statement read: "Leicester City Football Club has today (Friday) informed Danny Simpson that he will not be considered for first-team duties while the club examines current legal proceedings against him.
"Due to the ongoing nature of the legal process, the club will be making no further comment on the matter at this time."
Simpson put out a statement on his official Twitter account protesting his innocence.
"I was shocked by the outcome of yesterday's trial at Manchester Magistrates' Court where I was found guilty of common assault upon Stephanie Ward," he wrote
"I have therefore taken the advice of my lawyers and will be appealing my conviction."
Source : PA
Source: PA