Leicester have rejected a £40m bid from Newcastle for James Maddison.
Newcastle are now deciding whether to make an improved offer for the midfielder, with Leicester believed to value Maddison at closer to £60m.
Eddie Howe remains keen to strengthen his squad despite some setbacks in the transfer market this summer, having been rebuffed in their attempts to sign Everton midfielder Anthony Gordon, while French striker Hugo Ekitike opted for a move to Paris Saint-Germain instead of Newcastle.
Please use Chrome browser for a more accessible video player
Brendan Rodgers says James Maddison added a work ethic and maturity which made him even more impressive
But Leicester boss Brendan Rodgers could be determined to retain the services of Maddison, who produced some impressive displays in the closing months of the season after he dropped out of contention for the England squad following a dip in form.
With defender Wesley Fofana emerging as a target for Chelsea, Rodgers will be reluctant to allow key members of his squad to depart before the start of the new campaign next weekend.
Can the Foxes retain Fofana?
Chelsea are interested in signing Leicester City defender Wesley Fofana.
Fofana signed a two-year contract extension with Leicester in March. His deal runs until 2027.
Chelsea have signed Kalidou Koulibaly from Napoli, but have failed to bring in Manchester City’s Nathan Ake and Sevilla’s Jules Kounde following the departures of Antonio Rudiger and Andreas Christensen.
Howe seeks more creative options
Newcastle United have been linked with a move for Bayer Leverkusen winger Moussa Diaby.
Diaby is one of a number of attacking players thought to be under consideration by the club this summer.
It is understood there may be a gap between what Newcastle are prepared to pay for the 22-year-old France international and Leverkusen’s asking price.
Follow the summer transfer window with Sky Sports
Who will be on the move this summer when the transfer window closes at 11pm on September 1?
Keep up-to-date with all the latest transfer news and rumours in our dedicated Transfer Centre blog on Sky Sports’ digital platforms. You can also catch up with the ins, outs and analysis on Sky Sports News.