The winger has been out of favor at the Foxes under Brendan Rodgers.
Now it appears Leicester are ready to cash in on Gray in January, as he only has six months left on his contract.
Per the Sunday Mirror, Spurs and Newcastle will vie for Gray.
The winger may be a backup option at Tottenham, given the strength of their attack.
But he would likely get a lot of game time under Steve Bruce at Newcastle.
It is unclear if the player has a preference for his next club.