Crunch time for City over Max Gradel
Leeds United have told Leicester City they want to keep winger Max Gradel on loan for the rest of the season.
However, sources at the Yorkshire club say City would prefer a permanent deal and a transfer fee.
The Ivorian winger's emergency loan period at Elland Road ends on Monday and another short-term deal is not possible as Gradel, who is valued at about £200,000, has served the maximum time allowed under such a deal. The only option would be a long-term loan until the end of the season, and that would not include a 24-hour call-back clause.
Gradel, who has been a big hit at Elland Road and has become a favourite with the Leeds supporters, has stated he would like to stay with the club.
Leeds boss Simon Grayson has also made it known he would like to keep Gradel, but finances are still tight at the League One club.
Grayson has only paid one transfer fee for a player since taking over as manager in December, 2008. The rest of his transfer business has been done entirely through loans and free agents.
However, if Leeds sell striker Jermaine Beckford this month, that would provide the funds to buy Gradel. Beckford, who is out of contract in the summer, has had a transfer request accepted by Leeds and he could be sold for as little as £1.5 million, with Newcastle said to be interested.
City boss Nigel Pearson has previously stated he was unwilling to sell Gradel, but he has recently said he would have to have to wheel and deal during the January transfer window if he is going to be able to bring players in to strengthen his side's push for the play-offs.
It is believed Pearson has targets lined up but he will not move unless he can sell a couple of his fringe players.
Owner Milan Mandaric told the Mercury this week that none of the players currently making a first-team contribution would be sold and said it was the players currently out on loan that Pearson may try to offload.
Gradel made 19 starts and 11 substitute appearances last season, scoring twice, as City won the League One title, but he has found his opportunities limited this season.
The arrivals of Dany N'Guessan and Paul Gallagher in the summer meant Gradel made only one substitute appearance before being allowed to join Leeds on loan.
Striker DJ Campbell is on loan at Derby County until the end of the month, while Paul Dickov is back training with Leicester after his spell with the Rams expired.