Lincoln City chief executive Dave Roberts has confirmed that Dany N'Guessan is in talks with Leicester.
Skysports.com revealed on Wednesday that the French winger had rejected a new deal at Sincil Bank and that he was on the radar of the Foxes.
And Roberts has now verified that the 21-year-old has turned down the 'best' offer Lincoln could muster and that he is holding discussions with League One champions Leicester.
"We made Dany a third good offer to keep him at the club," Roberts told the Lincolnshire Echo.
"We made the best offer we could, but Dany has rejected that offer and we have given him permission to talk to other clubs.
"He is in talks with Leicester, who seem pretty confident about signing him. If he agrees terms, it will be down to the two clubs to agree a fee."
Should the two clubs fail to agree a price for N'Guessan, the fee will be decided by a tribunal as he is under 24 years of age.
It is understood that N'Guessan could join the Foxes on a three-year contract in June.