Leicester were docked six points this week after being found to have breached the EFL's profit and sustainability rules for the 2023/24 season.
The decision leaves Leicester outside of the Championship relegation zone only on goal difference, falling from 17th place to 20th, a far cry from the Premier League.
Fuchs, who won the Premier League with the side, spoke on the punishment and stated that it hurts to see the club fall from grace.
"It’s tough to see, the points deduction, which will put them right into a relegation battle," Fuchs told the Daily Mail.
"I checked the table right away. It hurts because as much as I’m dedicated and committed to what I’m doing here with Newport, I’ll always be a Leicester supporter.
"I have watched almost every single game since I left. It hurts a lot."
Vardy back to England?
Fuchs is currently Newport County manager, a side who sit second bottom of the fourth tier on 20 points and are the one of the lowest scorers in the league on just 29 goals scored.
The former Foxes star joked that he had messaged Vardy, who has scored five goals in Serie A at the age of 39 for Cremonese, to make the move to save Newport’s season.
"I asked Jamie if he wants to pack his bags. Of course, I did (get rejected), even though I knew what the answer would be!"