Leicester will only sell Islam Slimani to a Premier League rival for £20million - and are now negotiating with Monaco over a loan move.
Sportsmail understands that the striker - who joined the Foxes for £28m in 2016 - would prefer to remain in England, but that will only happen if a permanent deal can be struck.
Leicester are now asking Monaco for a £2.6m loan fee - the French club originally offered £1.3m - and an agreement is said to be close for the 29-year-old Algerian.
Newcastle are monitoring the situation but they are in talks with Feyenoord over a deal in the region of £16m for Danish striker Nicolai Jorgensen.