Manchester City are ready to match Manchester United's £70m bid for Harry Maguire, Sky Sports News understands.
United had moved ahead of their city rivals in the chase for the England defender by increasing their offer from the initial £65m that both clubs had indicated they would be happy to pay a fortnight ago.
But Leicester have made it clear they are not interested in selling at that price, especially after seeing United pay £50m for Aaron Wan-Bissaka, who they feel cannot compare to Maguire in proven international quality and experience.
Aiyawatt Srivaddhanaprabha, Leicester's owner, would need to personally sign off any deal for Maguire, who still has four years left on his contract and is seen as a key asset in their squad.
Maguire - along with all of the club's other international players - was not in the group who returned to begin Leicester's pre-season training schedule on Monday at their Belvoir Drive training complex.
It is not yet known if the England defender will join his team-mates on Sunday when they head to Évian-les-Bains for six days of training in the French Alps.
United's chances of landing Maguire may be influenced by City defender Nicolas Otamendi, who was expected to leave the Etihad this summer for Atletico Madrid. However, he may reconsider his decision after the departure of Vincent Kompany.
Leicester's position has always been that they have no desire or need to sell and would only consider a bid in excess of the £75m world-record fee paid by Liverpool for Virgil van Dijk.
However, they will welcome the prospect of two big clubs bidding against each other for one of their prized assets.
The tug of war for Maguire could be the saga of the summer transfer window, but why are Manchester United and Manchester City so keen on the Leicester defender?
Here, we look at how Maguire's defensive statistics may give an indication as to where he would fit best, how his numbers stack up against the rest of the Premier League and whether Leicester can keep hold of their star man...
Follow the Summer Transfer Window on Sky Sports
As well as keeping an eye on Sky Sports News, make sure you don't miss a thing with our dedicated Transfer Centre blog.
There's also the return of the Transfer Talk Podcast, the daily UK, Regional and European Paper Talk, plus features across SkySports.com and the Sky Sports app.