Leicester are in talks with Luton over a deal for right-back James Justin, Sky Sports News understands.
But the Foxes will face competition from other Premier League clubs, including Aston Villa.
Justin was named in the Sky Bet League One team of the year last season following an outstanding campaign which ended in promotion to the Championship for Luton.
Luton are keen to keep hold of Justin and will not allow him to leave on the cheap, with the Hatters likely to demand more than £10m for him.
The fee may deter Leicester, who see Justin as a possible understudy to current first-choice right-back and last season's player of the year, Ricardo Pereira.
Leicester's top priority is securing Belgium midfielder Youri Tielemans from Monaco on a permanent deal after he impressed during his six-month loan spell with the club last season.
Tielemans is likely to cost a club-record fee of around £40m and would take up much of Leicester's summer transfer budget.
No progress has been made with Monaco over a deal for Tielemans, with the 22-year-old currently away on holiday after featuring for Belgium last week.
Manager Brendan Rodgers is also in the market for a winger and it is understood he would rather focus the remainder of his transfer kitty on that position rather than a new right-back.