The report claims that the 27-year-old forward wants to play in the Champions League with Leicester but Watford have so far insisted he is not for sale after rejecting a second bid.
Leicester are looking to bolster their striker ranks this summer as Claudio Ranieri wishes to bring in added competition to Jame Vardy and Riyad Mahrez ahead of their Champions League debut.
Deeney has proven himself capable of playing at the top end of the Premier League, having netted 20 plus goals in three successive seasons before firing 13 league goals for Watford last season.
The Hornets seemingly don’t wish to sell their top player, and the situation becomes that little bit more intriguing as former club Walsall are entiled to a whopping 25% of any potetial transfer fee.
Leicester have the finances to make a new and imprved bid, yet having already seen a £25 million bid turned down, the East Midlands club may now feel they can get better value for money elsewhere.