The Algerian has made it clear ever since January that he wants to leave the King Power Stadium, and the Foxes have slapped a £75m price tag on his head.
Though £75m sounds a rather large sum, the general consensus is that only £60m would be paid up front, with the final £15m arriving in all sorts of instalments and bonuses written into the transfer.
Initially, how City would respond to that was unexpected. Leicester demanded £90m for the 27-year-old back in January - ultimately scaring City off, but having lowered their asking price, the Citizens are willing to play ball.
That is, according to Manchester Evening News, who report that the Premier League champions are willing to part ways with £70m in order to get their man. That's £5m shy of the £75m Leicester are after, but at this point, it's fairly obvious that an agreement can be ironed out.
Mahrez himself is desperate to leave the Foxes this summer, and despite a number of years remaining on the Algerian's contract, Leicester will adhere to it.
One thing that will only make City's attempts of signing Mahrez easier is the fact that he will not be going to the World Cup. Algeria's failure to qualify for Russia means that there is no pressure on working a deal out any time soon.
With that said, Pep Guardiola is keen to get his summer business done as early as possible to give his squad the best chance of defending their title next season.