The Algerian winger is desperate to quit the Foxes and join the Premier League champions this summer.
He nearly went to to Pep Guardiola's side in January, but City refused to meet his £80m asking price.
The two clubs have been in talks at the start of this transfer window, and are getting nearer to thrashing out terms.
The 27-year-old is now expected to leave Leicester, after not turning up for pre-season today.
The Foxes squad returned from their holidays, but without the ten stars who played at the World Cup and those in international friendlies.
Mahrez played for Algeria in a 3-0 loss in Portugal on June 7, according to the Mirror.
The players were excused this week before Claude Puel takes his team off to France for a training camp next week.
But it is understood a deal will be struck this week so the transfer does not get dragged out through the coming weeks.
Source: Read Full Article