Yakubu has been starved of regular first team football at Goodison Park and was left out of the squad that was beaten 2-0 by Stoke on New Year's Day.
The Nigerian striker wants to leave but it is not yet known whether he would be prepared to drop down a level into the Championship.
Wanted man: Yakubu is a shock target for Leicester
Leicester, who are backed by Thai millionaires, are one of only a few clubs who could match Yakubu's current wages. Everton are exploring all options to bring in a striker themselves and retain an interest in Tottenham's David Bentley.
Leicester have agreed a fee with FC Twente for Bernard Parker as Sven Goran Eriksson also looks to tie up a deal for Kyle Naughton.
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