The 25-year-old is one of the hottest properties in England after inspiring the Foxes to Premier League glory last season, winning the PFA Player of the Year in the process.
The Algerian winger has been heavily linked with a move to Arsenal over the past few days and weeks.
That being said, the report goes on to claim that Arsenal and Leicester have not yet agreed on figures in a claim which might worry fans of the North London club.
Manager Arsene Wenger is notoriously frugal when it comes to transfers, and the Frenchman will certainly not be held to ransom by any club over a player.
Arsenal supporters could justifiably worry that Wenger's unwavering stance over transfers could scupper the deal, but time will tell whether both clubs can come to a compromise.