The 27-year-old Algerian global - whose performances in Leicester's astonishing title win in 2016 earned him the Players' Player of the Year award - is according to Sky Sports News due to undergo a medical at Manchester City this week.
Mahrez was close to joining City on Deadline Day in January, but Leicester asked for £80 million (R1.36 billion) at the time, and City pulled out of the deal.
Despite the player having formerly handed in an official transfer request back in January, the Foxes declined to sell him.
Several months later Mahrez is closing in on a deal, after Leicester and City are about to agree a deal around 65 million.
Mahrez enjoyed a fine season in 2017-18, as he provided 10 assists and scored 12 goals in 36 Premier League appearances.
Claude Puel will still be on the search for a wide player to replace Mahrez and Patrick Roberts has been discussed as a £15m addition to the deal.
Manchester City have also been linked with Napoli midfielder Jorginho with the Italy worldwide reportedly left out of their pre-season training camp squad.
It is understood the 27-year-old wants a resolution before his proposed return to Leicester next week and negotiations are continuing on that basis.
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