The Foxes are determined to demand at least £40-50million for the attacking Algerian international.
Last season’s PFA player of the year has asked to leave but doesn’t have a buy-out clause.
He ideally wants to join a club in the Champions League after producing his best display this term in Leicester’s run to the quarter-finals.
But the star has three years left on his £100,000-a-week contract signed last summer. Leicester are demanding top dollar should anyone wise to prise Mahrez, 26, away.
Monaco are favourites for his signature amid talk their star may Kylian Mbappe go, while Arsenal are also interested.
But Mahrez believes he has given good service to Leicester after costing just £400,000 from Le Havre in 2014 and feels City’s valuation of him is prohibitive.