Last Updated: Wed, 23 Jul 2014 12:00
Watford have told Leicester they will have to increase their offer for Troy Deeney to at least £8m if they want to land the striker,
City confirmed the club record signing of striker Leonardo Ulloa on Tuesday as he joined from Brighton for a club-record £8m in a deal that could see the fee eventually rising to £10m.
Boss Nigel Pearson remains interested in Deeney but, after the Hornets turned down the Foxes' second bid for him at £7.5m, he will now have to raise it again if he is to lure him to the King Power Stadium.
Several other clubs are also keen on Deeney, including Norwich, Swansea and QPR, but Leicester appear favourites to land him - provided they cough up Watford's asking price.
Have you an opinion on this story? Put your money where your mouth is and claim a free £25 bet.