Leicester City are expected to be restricted in the deals they can do in the January transfer window.
We are now in day 16 of the 2025 winter transfer window and it’s been pretty slow going at the King Power Stadium.
But with several weeks still to go, activity on the incomings and outgoings front is to be expected.
With this in mind, Leicester City News have rounded up all the latest transfer news and rumours coming out of the club.
Leicester City recall Tom Cannon as January sale mooted
It was confirmed on Wednesday that Leicester have recalled Tom Cannon from his loan spell with Stoke City, whom he scored nine goals for.
Fans may wish to see the striker remain in the Midlands for the second half of 2024/25 but that’s looking unlikey.
Sunderland want to sign Cannon in a loan-to-buy deal that would see the Foxes earn £13m in the summer if the Black Cats win promotion from the Championship.
Elsewhere, the forward’s former club Everton, have been linked to the Leicester ace alongside Sheffield United.
Leicester City January transfer budget update
Leicester escaped PSR punishment from the Premier League despite speculation they could be handed a points deduction after submitting their 2023/24 accounts.
However, the Foxes are not in the clear just yet and remain in a legal battle with the competition due to their 2022/23 finances.
While this shouldn’t have any barring on their finances going forward, it’s since been reported that Leicester only have a small January transfer budget of £12m-£14m.
That budget is expected to go up if players are sold but for the time being, Ruud van Nistelrooy has very little to play with in the market.
Leicester target Mathys Tel wanted by Chelsea
Leicester were targeting a Mathys Tel of German powerhouse Bayern Munich according to reports in late 2024.
The winger was thought to be available on loan, which would have suited the Foxes and seen them land a replacement for long-term absentee, Abdul Fatawu.
However, it’s now emerged that Chelsea have made contact to sign Tel this week. It’s claimed a £40m bid would be enough to sign the winger – a figure Leicester obviously can’t compete with at this stage.