Defender Richie de Lait and midfielder Matty James are thought to be involved in a £2 million deal with the Foxes. Both have made just three senior appearances for the Red Devils and are not thought to be involved in Sir Alex Ferguson's plans for the future.
Meanwhile, news is also rife that Larnell Cole - also a product of the Old Trafford academy - could move to the King Power Stadium. Ferguson has stated his intentions to allow young players out on loan to gain first-team experience next term.
City will finance the purchase of their targets with the potential sale of a string of Sven Goran Eriksson signings. According to the Mirror, Jermaine Beckford, Lee Peltier and Paul Konchesky could join defender Matt Mills on the exit list.
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