Leicester are keen to bolster their defence after the departure of Robert Huth and question marks raised over the fitness of captain Wes Morgan. Recent acquisition Harry Maguire has also been linked with a move away from the club with Manchester United sounded out as a possible destination.
Dragovic spent last season on loan at Leicester from Leverkusen and it seems the Austrian International impressed, despite playing a reduced role. Dragovic only made eleven Premier League appearances for the Foxes during his season-long loan.
Leicester Mercury are reporting that the defender is happy with his time at the club but he would want assurances from Claude Puel over more playing time before he will commit to a permanent deal.
Leicester will also pursue West Brom captain Jonny Evans who is thought to be available for a cut-price following his club's relegation. Evans is alleged to have a £3m release clause in his contract and is sure to attract plenty of suitors at that price.
Claude Puel did an excellent job stabilising the club after taking over from Craig Shakespeare mid-season. The club had been under threat of relegation after a poor start, but the Frenchman guided his side to a 9th place finish.
The club is now happy to back their man in the upcoming window as he looks to add to his already impressive squad. They are also braced for some significant departures, most notably Riyad Mahrez who hopes to complete his move to Manchester City.