Brendan Rodgers is set to become Leicester's new manager after he was given permission by Celtic to speak to the club.
Sky sources understand Rodgers is currently in Leicester after telling the Celtic board on Monday of his desire to leave.
Chris Davies and Kolo Toure, who are currently part of Rodgers' staff at Celtic Park, are expected to join him in Leicester if a deal is agreed.
First-team coach John Kennedy is likely to be in charge of Celtic's Scottish Premiership game at Hearts on Wednesday, live on Sky Sports. Neil Lennon and Celtic are understood to be meeting for talks later on Tuesday over a potential return, should Rodgers leave.
Celtic released a statement on Tuesday saying: "Celtic today confirmed that it has been approached by Leicester to speak to Brendan Rodgers with regards to their current managerial vacancy.
"Brendan has indicated to the club that this is an opportunity he wishes to investigate further and therefore, very reluctantly, the club has granted him permission to speak to Leicester."
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Leicester are understood to have told Rodgers they want to make a permanent appointment immediately, meaning he will have to sacrifice his ambitions of winning a 'treble treble' in Scotland if he wants the Leicester job.
Lennon was in charge at Celtic Park between 2010 and 2014, and Sky sources understand he has cancelled a planned trip to Qatar - where he was due to work as a pundit - following Leicester's approach for Rodgers.
The 47-year-old won the Scottish title three times during his spell in charge at Celtic, and is available immediately having left Hibernian last month.
Leicester, who host Brighton in the Premier League on Tuesday night, have moved for Rodgers following their decision to sack Claude Puel on Sunday after their 4-1 home defeat to Crystal Palace.
The Frenchman departed the King Power Stadium after going seven matches without a win - a run that leaves Leicester 12th in the Premier League, eight points above the relegation zone.
Puel also oversaw the Foxes' 2-1 defeat at League Two side Newport last month that saw them exit the FA Cup at the first hurdle.