Following their fairytale title win in the 2015-16 season, Leicester splashed the cash on Algeria global Islam Slimani, in a record breaking £30m move from Sporting Lisbon.
Walker was arguably the best-performing defender of the 2016-17 Premier League campaign but £50 million is a steep price for City to pay.
GETTY Man City boss Pep Guardiola wants to sign Tottenham star Kyle Walker
However if Leicester are able to qualify for the Champions League during Iheanacho's first your years at the club, and City want to exercise their buy back option, a fee of £50m has been agreed between both parties.
Craig Shakespeare is said to favour the attacking partnership of Vardy and Iheanacho, with Slimani expected to be sold as a makeweight.
20-year-old Nigerian global Iheanacho has always been linked with a departure from the Etihad, with the arrival of Gabriel Jesus at the club earlier this year pushing the youngster further down the attacking pecking order behind the Brazilian and fellow South American superstar Sergio Aguero.
Kelechi Iheanacho's current contract with Man City runs until June 2021.
Leicester To Complete Signing Of Sevilla Midfielder Iborra
Eibar defender Florian Lejeune has completed his move to Newcastle by signing a five-year deal. LEICESTER City have agreed a deal to sign Sevilla midfielder Vicente Iborra for £12.3million.
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