According to Sky Sports, the Premier League side are interested in signing Iheanacho.
West Ham have made an offer for the player, who City value at £20m.
The 20-year-old Nigerian international attacker started just one game for City in 2017, against Burnley on January 2.
It’s understood that the Foxes head coach Craig Shakespeare sees signing another top class striker as a priority, as he looks to strengthen his options up front alongside Jamie Vardy.
City manager Pep Guardiola is prepared to sell Iheanacho for the right price, as he looks to other attacking options.