Sanchez has three years left to run on his current contract and Brighton are likely to place a huge price tag on the Spaniard, which may put him out of reach of all but the wealthiest clubs this summer.
Leicester are not among those and are likely to need to sell players to provide boss Brendan Rodgers with the outfield signings he wants.
Schmeichel has been at Leicester since 2011, when he was signed for just £1million. During his time at the club, Leicester have won the Premier League, FA Cup and Community Shield, as well as reaching the quarter-finals of the Champions League and semi-finals of the Europa Conference League.
The 35-year-old is one of the club's top earners and has 12 months left on his current deal. He admitted earlier this season that he may seek a new challenge before his career ends.
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