Arsenal are seeking a buyer for Mohamed Elney to fund a deal for Villarreal midfielder Pablo Fornals.
The Sun says boss Unai Emery wants to pocket £15million for the Egyptian who has yet to play a league fixture this season.
Elneny, 26, has struggled to make an impact at Arsenal since his move from Basel two years ago and Leicester could be prepared to offer him an escape route.
He penned a new contract until 2022 earlier this year but the gaffer is continuing to put his own stamp on the side.
Elneny was linked with a switch to Marseille in the summer but a deal failed to materialise.
If Arsenal can flog Elneny, then they will use the funds to land Villarreal midfielder Fornals.