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Reports from Algeria newspaper Le Buteur claims Arsenal have agreed a £37m deal with Riyad Mahrez following talks with his agent last week during their preseason game against Paris Sanit-Germain where they lost 4-0.
Wenger and assistant manager Steve Bould watched Mahrez in action last week but and left when he was substituted in the 60th minute.
However, Claudio Ranieri is desperate in keeping his priced assets and can’t afford to let go of him after losing N’Golo Kante to Chelsea.
The Algerian newspaper further claimed Leicester City has seen a £100,000 a week contract turned down fueling speculation he wants to move away from the King Power Stadium.
Ranieri admitted at the weekend Mahrez has been distracted by the unwanted rumours linking him with a move away from the King Power Stadium.
The 25-year-old Algerian international guided the Foxes in winning the Premier League scoring 17 goals and 11 assist.