It is understood Leicester have made a bid of £800,000 as the club look to bolster their attacking options for their Premier League campaign.
Dalman said: "Leicester City have made an offer which triggers a release clause in Fraizer's contract.
"We don't want to sell him and would love him to stay but we had no choice because of the clause.
"We have to allow Fraizer to make his own decision but hopefully he can stay."
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