The 33-year old Cardiff-born forward has scored just twice this season for both Leicester and Leeds, who took the player on loan in January.
Blake's last game was for Leeds against Birmingham City in the FA Cup in January and is surplus to requirements at the Walkers Stadium.
“It is no secret that we have to take a large chunk of the wage bill this summer and obviously the players who are earning high wages are the main ones to suffer," said Levein.
Nikos Dabizas, Scott Gemmill, Keith Gillespie, Ian Walker - all full internationals - have been released, as has Lilian Nalis. James Scowcroft, Lars Hirschfield and Jason Wilcox meanwhile, are waiting to hear about their futures at the club.
Blake will now have to assess his options during the summer, and may be a target of League One and Two sides, but may struggle to find a place in many of the Championship sides.