The England international will be allowed to leave if Adrien Silva can be signed from Sporting Lisbon
Chelsea are set to table a third offer for Leicester star Danny Drinkwater worth up to £30m.
The Foxes could accept the £27m bid with add-ons should they be able to sign Sporting Lisbon midfielder Adrien Silva as a replacement.
The England international is a key target for Antonio Conte, who wants cover at centre-midfield.
After a superb partnership with N’Golo Kante that helped Leicester win the title, Conte could line them up together once again.
Silva, 28, is rated at £22m by Sporting who need to sell players to balance the books and Leicester are hopeful.
Drinkwater has asked for a move and is desperate to go to Stamford Bridge.
The 27-year-old will hope to impress in the Champions League in order to work his way back into contention for a World Cup place.