After an impressive loan this season, Leicester have decided not to take up the €20m option they had for the Bayer Leverkusen defender.
BILD says the Foxes remain interested, but are exploring other targets at this time. Dragovic is also interesting other Premier League clubs.
Bayer chief Rudi Voller revealed: "Now Dragovic is our player. There are multiple possibilities. We see that very calmly. The Europa League brings more games to us. We know what we have with Drago. He is a top defender. There is no reason to just send him away.
"He did well in Leicester. In England, the boy also has a market."