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Leicester boss Brendan Rodgers is poised to complete his first signing of the transfer window with the capture of Ryan Bennett.
The PA news agency understands the Wolves defender is to join the Foxes on loan for the rest of the season, with an option to buy in the summer.
Bennett's arrival could now clear the way for Derby to sign City defender Filip Benkovic.
The 29-year-old Bennett joined Wolves in the summer of 2017 on a free transfer from Norwich, and has gone on to make 92 appearances, scoring three goals for the Molineux club.
It is understood Bennett is undergoing a medical ahead of the deal being confirmed by City on Friday afternoon.
Bennett started out as a trainee with Grimsby, making 110 appearances for the Mariners prior to a loan move to Peterborough in October 2009 that was followed up three months later by a permanent £500,000 switch.
After spending just over two years with Posh, with whom he made 89 appearances, in March 2012 the Canaries then splashed out £3million on Bennett who spent five years at Carrow Road prior to joining Wolves.
