Birmingham City boss Gary Rowett has confirmed a buyout clause in Demerai Gray's deal.
Leicester City are believed to have triggered the England U-20's £3.75 release clause.
Rowett told the Birmingham Mail: "In the summer we sat down with Dimmy and his agent - he had a year left.
"They were insistent that unless we put certain things into his contract to clarify the amount it would take to get him out that they would run the contract down and go on a tribunal in the summer."