The French winger has had an exceptional return to form in Nice.
The French side are also hopeful of signing the free agent, who has got his career back on track after a stint with Nice.
He told Canal Plus yesterday that Leicester were in the lead regarding his signature:
"With Ben Arfa it's a question of passion.
"He's close to our desire, our enthusiasm, our supporters.
"I really believe that he wants to come to Lyon. If he doesn't come, it would be for reasons that have nothing to do with passion.
"I think it's towards Leicester that things are happening. That's what people who spoke to him on the telephone this afternoon have told me."
It would be a real coup for Leicester if they managed to bring in Ben Arfa, who has been fantastic since leaving Newcastle for Nice.
He scored 17 goals in 36 games for the club after he was finally allowed to play again after a FIFA ban.
Ben Arfa would be a fantastic signing for Leicester as they look to take on Europe in 2016-17.
The Frenchman, who is similar in style to Riyad Mahrez, would ass quality and depth to their attacking line-up – something that will be needed if they are to maintain a Champions League challenge and keep up good form in the Premier League.
Leicester fans will be hoping that Aulas is right.