The Nigerian has impressed in the Championship since he left Goodison Park for the Walkers Stadium on loan for the end of the season in January and has hit four goals to move them within touching distance of the play-offs.
Reports say the former Middlesbrough striker has told Leicester boss Sven Goran Eriksson he wants to stay with the Foxes if they manage to secure a return to the top flight as he is unlikely to have a future at Everton.
Toffees boss David Moyes is thought to be happy to let Yakubu leave if the right fee can be agreed while Eriksson revealed recently the striker was keen to stay long-term.
Eriksson said: "I'm quite sure if we go up that Yakubu will stay. He wants to."