Spurs and Cherries had bid turned down over the summer as Foxes see pacey winger as a big part of club’s future
The Foxes have offered to double the Tottenham and Bournemouth target’s £25,000-a-week deal after turning down bids this summer.
Demarai Gray has remained behind wantaway Riyad Mahrez in the pecking order
Leicester winger Gray fails to win a penalty against Huddersfield
Gray, 21, has been frustrated with a lack of game time and the Cherries tried to swoop with a £30million offer.
But according to The Mirror, Foxes chiefs believe the England Under-21s starlet will agree to extend his current deal, which runs out in 2020.
Leicester signed the pacey winger from Birmingham for just £3.5m in 2016 and regard him as a huge prospect.
Foxes boss Craig Shakespeare can see the youngster’s potential but has so far largely used him from the bench.
Gray has come on as a substitute in all five Premier League games this season and is desperate for more game time.
Wantaway winger Riyad Mahrez failed to secure an exit this summer and has so far kept his place in the starting XI.
Demarai Gray has not started a league game this season
Craig Shakespeare insists Gray has a big future with Leicester
Discussing Gray’s future, Shakespeare said: “I’ve said and stated a long time ago that for me Demarai has a big future and I want it to be with this football club.
“He is very well thought of and hopefully we can resolve that contract, which is on-going.
Demarai Gray was the subject of bids from Tottenham and Bournemouth
Hudderfield 1-1 Leicester: Both teams could’ve won it with disallowed goal and Jamie Vardy miss from 3 yards out!
“He wants more game time and in an ideal world we want to give him that and he wants to develop here.
“But having spoken to him since the window closed, I know he is in a good place.”