26-year-old Riyad Mahrez is expected to leave this window with Serie A giants Roma closing in on a deal for the Algerian international.
The 2016 PFA player of the year, is said to be wanting a move away from the Foxes this summer in search of another season of Champions League football.
Mahrez scored 10 goals in all competitions for Leicester last season and has been a key player of their since he joined from Le Havre in 2013.
However, with Mahrez clearly keen to go, Leicester want to tie down Gray, such that they don't lose arguably their two best wide players at the club.
Craig Shakespeare moved earlier this month to reassure in-demand Gray about his first team prospects at the King Power next season after his excellent display at the Under-21 Euros.
Craig Shakespeare has confirmed there have been no bids for Riyad Mahrez and that he's trained in a professional manner so far.— BBC Leicester Sport (@BBCRLSport) July 18, 2017
Demand for Gray’s signature has increased after two goals he scored in Aidy Boothroyd’s side’s run to the last four.
However, the 21-year-old made just nine Premier League starts last season and is reportedly a target for other English clubs, including Spurs, Liverpool and Everton.
As a result Leicester have moved to offer pay-rises for Gray, who earns £25k-a-week at the King Power after joining from Championship Birmingham in January 2016.
These pay rises would then see Gray's wage move closer to that of other senior players such as Jamie Vardy, who's on £100,000 a week.
Leicesters's new boss, Shakespeare, is also desperate to keep hold of the young Englishman:
“He’s a player of huge potential who is rated very highly here among the coaching staff and his own players," claimed Shakespeare.
Mahrez has already asked to leave in a public statement, but Leicester have put £50m price tag on the Algerian, which could put off potential suitors, in the form of Arsenal and Roma.
As a result there is no guarantee that Mahrez will leave the King Power this summer, but Leicester will look to tie down Gray to a new deal regardless.