The Nigerian international had attracted interest from a number of clubs this summer but he was left out of City’s pre-season tour of the United States in July as Leicester emerged as front-runners to land his signature.
The principles of the £25m deal have been in place for some time but the move was held up due to an image rights issue between Iheanacho and his former agents.
The striker had his medical in the East Midlands on Tuesday and the move is set to be completed this week.
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