As he is under 24, Lincoln will be due a fee for the former Boston player and chairman Steff Wright is hopeful of coming to an agreement with counterpart Milan Mandaric at next week's annual meeting of the Football League.
"We are in negotiations with Leicester City regarding a compensation package for Dany," Wright told the Lincolnshire Echo. "The Leicester chief executive is away at the moment.
"But myself and (Lincoln chief executive) Dave Roberts will be attending the Football League's annual meeting in Portugal next week. A lot of business gets done out there as we're all in the same place.
"To our knowledge, Dany has not agreed terms with Leicester, but as he is a free agent, that is his business. He may well have done. For us to start negotiating a fee with Leicester is par for the course. That will be the fee if and when Dany agrees personal terms."