It is believed that the Foxes and Mahrez had reached a verbal agreement with the club at the end of last season that would allow him to leave this summer, and the Algerian fully expects the club to honour their deal.
After failing last summer, Arsenal will once again try to tempt Mahrez away from the King Power Stadium.
Spurs boss Mauricio Pochettino is also reportedly interested in the 30-year old, and with Champions League football on the horizon, the Argentine sees Mahrez as the perfect option to bolster the his attacking options.
Mahrez had a stellar season for Leicester in 2015-16 after being purchased for just £400,000 from Le Harve in 2014. Mahrez won the PFA Player of the Year award, along with winning the title with the Foxes.
Despite being rewarded with a new £100,000 a week deal in the summer, Mahrez has failed to replicate last season's form and is believed to be wanting a new challenge.
It is reported that Leicester are 'holding out for in excess of £30m' for the winger.