The report claims that the Foxes are lining up a £10 million swoop for the Malaga defensive midfielder after sending scouts to monitor his progress in recent weeks.
Camacho, a one-capped Spain international, has earned plenty of plaudits this season following a number of terrific performances for Malaga during their solid La Liga campaign.
The 26-year-old is predominantly a holding midfielder who likes to break up play, initiate attacks from deep and keep things ticking over when his side are in possession of the ball.
His impressive displays have seen him heavily linked with a move to Liverpool, and a report last month in the Daily Star suggested that he already visited Melwood ahead of a proposed move to Anfield.
The Reds are seemingly keen on his services, with Jurgen Klopp in the market for a new midfielder.
However, Leicester have been the latest club credited with an interest in the star and fresh reports claim they are ready to meet his £10 million release clause in order to sign him.
The Foxes have Champions League football to look forward to next season after incredibly winning the Premier League title this year, and their stock across Europe has risen considerably as a consequence.
Manager Claudio Ranieri could see him as an ideal man to compete with Danny Drinkwater and N’Golo Kante in midfield, or even as a possible replacement for the latter should the in-demand midfielder leave.