Gray on his way to Leicester as Foxes activate £3.75m exit clause

Leicester have had a bid accepted by Birmingham for Demarai Gray after activating his £3.75million release clause.

The January transfer window only opened on Saturday but Leicester, who begin 2016 level on points with Premier League leaders Arsenal, have moved quickly to follow up their interest in the highly-rated teenager.

During the summer the Foxes triggered a release clause in Gray’s contract but the winger decided to remain at St Andrew’s.

Now though, an offer thought to be around £3.75million has led to the 19-year-old discussing personal terms with Leicester and undergoing a medical.

Bournemouth, Leicester’s opponents on Saturday, and Liverpool were also interested in Gray and had several bids for him turned down in the summer.

Gray was not in the Birmingham squad for their Sky Bet Championship fixture at home to Brentford.

It is hoped his move to the King Power Stadium will be concluded next week, with the possibility of the deal involving a loan back to Birmingham for the remainder of the season.

Birmingham manager Gary Rowett insists he is not downhearted at the prospect of losing his star talent.

Following the impressive 2-1 Sky Bet Championship home win over Brentford, Rowett declined to name the club likely to sign Gray, but did say: “One Premier League club met the amount required and Demarai requested permission to speak to that club.

“Should the move go through I wish him all the best. He is an ambitious young player but we have shown that we have had two games without him and done well.

“The club have done all the right things and now we will have funds to strengthen the team. We can now move the team in a different direction and use the money wisely.

“Demarai is very ambitious and desperate to play in the Premier League and he backs his own ability to fulfil that dream.”