A hat-trick from Harry Kane and Jeffrey Schlupp's own goal ensured Nigel Pearson's side were beaten 4-3 in the capital to remain seven points behind fourth-bottom Sunderland with a game in hand.
Leicester have only nine top-flight games remaining as they attempt to avoid an immediate return to the Championship, but goalkeeper Schmeichel insists they can still perform the great escape.
The Denmark international, who made his first start since December on Saturday, told the club's official website: "We came to White Hart Lane and scored three goals, and now there's no time for our heads to drop.
"We've nine games left and six of those are at home against teams that are in and around us. It's still in our hands and we have to do better, we have to win.
"It's disappointing but on the other hand I think we've got a reason to be proud of ourselves for the way we stuck at it. We went 2-0 down and got back to 2-2, then the penalty, that killed us.
"Then the fourth goal [Schlupp's own goal], that's just the way it's been going. But if we keep playing like that then we'll win more points than we lose."
