The Premier League side agreed a club-record £10.5million fee with Internacional for Chile midfielder Aranguiz on Saturday, along with a £3million fee for Napoli’s Gokhan Inler.
Aranguiz has however ruled out a move to join Claudio Ranieri’s side, instead preferring a move to Bayer Leverkusen.
The Bundesliga side had agreed a fee for the midfielder with Internacional over the weekend for a fee lower than Leicester’s valuation, but the 26-year-old’s revelation will put the Germans in pole position for his signature.
“The president told me there’s a bid from Leicester and it’s good for the club,” Aranguiz told Brazilian television network Globo. “But for me, Leverkusen is important.
“I am not talking about money. Between Leverkusen and Leicester, the best is Leverkusen; they’re a bigger team. I want to go.”
“I am 26 years old, and am at a stage where I need to go a step further.”