The 24-year-old came through the youth ranks at Arsenal and made his debut for the club under Arsene Wenger in the 2017/18 season.
Nelson has featured under Mikel Arteta and made more appearances in all competitions last season (23) than he ever had before for Arsenal.
However, just one of his 15 Premier League outings came in the starting XI and he is certain to have to move on if he wants regular first team football from the start of matches.
The Foxes are keen to offer him that opportunity, with transfer expert Fabrizio Romano reporting that negotiations are underway between the clubs.
Leicester want to loan the England Under-21 international and will be obligated to buy him at the end of the short-term deal.
If an agreement can be reached between the clubs then Leicester are confident they can attract Nelson to the King Power Stadium as the player has worked with new manager Steve Cooper in the past.
Cooper knows Nelson from his time in charge of England Under-16s and Under-17s and would love to be reunited with him.
Nelson made it into the Team of the Tournament at the 2016 Under-17 European Championship playing under Cooper.
Nelson has never played for an English club other than Arsenal, but has spent time on loan in Europe with Hoffenheim and Feyenoord.
West Ham have also been linked with a move for Nelson this summer, but it appears that Leicester are now at the front of the queue for his signature.
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