The midfielder arrived at Old Trafford from Crewe's celebrated academy for £6.5 million in 2012, and, despite being touted as a new star for the Red Devils, the 20-year old has struggled to make an impact.
A successful loan spell at Wigan Athletic culminated with the club reaching the Championship play-offs, with Powell scoring seven goals in the process, and this impressive run of form may have given hope to the youngster that he would be able to break into the United first-team.
However, the post-World Cup arrival of new manager Louis Van Gaal may restrict playing opportunities even further - especially with the rumoured list of high-class talent that Van Gaal is targeting.
It has been suggested that Powell could search for a move away from Old Trafford as the English Under-21 international looks to establish himself in the Premier League, and the Express is reporting that Leicester City are keen of acquiring his talents as they prepare for their first Premier League campaign in a decade.
Nigel Pearson has previous with Manchester United, securing three of his Championship champions from the Premier League giants. Club Player of the Year Danny Drinkwater signed for £750k after failing to make an appearance for United, whilst his midfield partner - and Young Player of the Year - Matty James arrived with full-back Ritchie De Laet for a combined fee of £1.1 million.
With suggestions that Foxes owner Vichai Srivaddhanaprabha is prepared to spend big to secure a top-five finish in the Premier League, a deal for Powell is likely to be completed regardless of asking price - although Powell's desire to leave could lower any fee that United would request.
Nigel Pearson has built a reputation for signing high quality players at discounted prices, and securing the services of one of English footballs brightest talents would suggest that the desire for a top-five finish is being taken seriously by both club and player.