Leicester City are hoping to encourage an auction for Riyad Mahrez if he refuses to sign a new contract, despite the fact the winger is interested in joining Arsenal.
The Gunners are pushing to sign last season's PFA Players' Player of the Year and Mahrez is keen on linking up with Arsene Wenger's men.
However, according to French radio station RMC, Leicester are currently blocking Mahrez's departure and do not have an agreement in place with Arsenal.
The Foxes have offered Mahrez a new and improved contract, but if he refuses to sign, they want to encourage an auction between several clubs for the former Le Havre man.
Gunners boss Wenger has already tasted defeat in trying to sign one player from Leicester this summer as Jamie Vardy snubbed the chance to move to the Emirates Stadium despite Arsenal activating his release clause.
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Mahrez was a key man for Claudio Ranieri's side last season as they won the Premier League, but unlike Vardy, he does appear willing to quit the King Power Stadium.
The 25-year-old signed for Leicester in the 2014 winter transfer window from Le Havre.
