According to Sky Sports, the 27-year-old Algerian will undergo a medical this week with all other aspects of the contract between the two clubs already agreed upon. The Foxes were asking for £80m in January and although this figure falls short of their valuation they have accepted it to further bolster their squad.
The Premier League champions have remained keen on the Algeria worldwide, who scored 13 goals in 41 appearances for the Foxes last season. If Leicester does sell Mahrez for the reported 65 million, they will make a huge profit on his 500.000 transfer from Le Havre back in 2014.
FIFA WC: France beat Belgium 1-0 to reach finals
The European nation will face either England or Croatia on Sunday after they defeated their neighbours Belgium by one goal to nil. We've never been in such a situation, and that's why we need our team spirit more than ever against France .
The Algerian worldwide returned to top form last season, scoring 13 goals and providing 13 assists in 41 appearances.
He has been given extra time off by the Foxes after playing in Algeria's global games in June and is due back for training next week.
Mahrez along with striker Jamie Vardy and French midfielder N'Golo Kante became unlikely household names during the title winning season as Italian manager Claudio Ranieri engineered one of the greatest sporting surprises of all time. Guardiola's men have a lot of games to play next season and Mahrez will certainly get his chance to shine.