Gray’s existing contract runs out at the end of the season and he can now speak to clubs outside of the Premier League arranging a summer move.
This has alerted many across Europe, with Marseille and Benfica thought to be most keen on the winger who has proven Premier League experience, according to The Sun.
Demarai Gray looks set to leave Leicester City on a free contract at the end of the season
The report also suggests Monaco are keeping tabs on his situation with German clubs also on standby over his availability.
Gray has become reluctant to pen a new deal at the King Power Stadium beyond 2021 and as a result has seen his playing time reduced dramatically this term.
He has only played 18 Premier League minutes this season as a substitute although that was last time out on Monday against Crystal Palace.
Gray’s reluctance to pen a new deal has seen him largely frozen out of the first team this term
The appearance was only the second time this season he had made Brendan Rodgers’ squad having started in the 2-0 defeat by Arsenal in the Carabao Cup. Otherwise he has been featuring for the Under-23 team.
Gray was a signing halfway through the 2015-16 campaign from Birmingham City for £5million, making him part of the Foxes’ Premier League title-winning side.
Since signing he has gone on to make 169 appearances for the Foxes scoring 13 goals and providing 17 assists.
Leicester may decide to cash in on Gray this month to prevent a free transfer in the summer but they are now powerless to prevent him from arranging such a move.