The report claims that Leicester are prepared to spend £24 million on the striker, but his former club Walsall are entitled to a 25% sell-on fee leaving Watford wanting £32 million to compensate for the clause.
Leicester are looking to bolster their attacking options this summer as they prepare to defend their Premier League title and look to compete in the upcoming Champions League campaign.
With Jamie Vardy and Riyad Mahrez linked with moves away from the East Midlands, as reported by The Guardian, boss Claudio Ranieri ultimately cannot afford not to bring in another attacking addition ahead of next season.
Watford’s Deeney has been identified as the number one attacking target, but the Hornets aren’t willing to sell him for anything less than a whopping fee following his success in the English top flight.
After helping the Vicarage Road side earn promotion from the Championship, Deeney played a key role in Watford’s season of consolidation as he posted an impressive 13 goals and seven assists.
The 27-year-old still has his best years ahead of him, and there is little doubting his ability to make an impact at a club challenging towards the top end of the Premier League table.
The report claims that personal terms will be wrapped up quickly once the clubs agree on a fee, although right now Leicester are some way short of Watford’s hefty valuation of the player.