According to reports on the 20-year-old is in advanced talks with the Foxes and is thought to be well interested in making the switch.
Since making his debut for the Blue side of Manchester in 2015, Iheanacho has scored 21 goals in 64 games in all competitions.
His current deal which he signed last August ends in 2021, but saw his playing time limited by the arrival in January of Brazil forward Gabriel Jesus.
Should Kelechi Iheancho join Leicester City, he would become the third Nigerian currently playing for the club joining Ahmed Musa and midfielder Wilfred Ndidi.