Leicester City hope to complete the signing of Demarai Gray from Birmingham City after agreeing to meet the release clause in the 19-year-old’s contract.

Gray has emerged as one of the brightest prospects in the Football League and attracted interest from a number of Premier League clubs, including Bournemouth, but Leicester are believed to have offered the £4.7m fee that would trigger a deal for the winger.

An England Under-20 international and St Andrew’s academy graduate, Gray signed a new contract only last month, when he agreed a three-year deal at a time when he had less than 12 months to run on his deal. It is understood, however, that an exit clause was inserted as part of the agreement.

Gary Rowett, Birmingham’s manager, said at the time: “We didn’t want him to enter into the last year of contract and knowing we could have a year where he is not settled, he ends up moving potentially for nothing abroad, or moves on via a tribunal. He knows that one day he wants to play in the Premier League. If he keeps working hard on his game and keeps improving, keeps listening to people, then he can do that.”

Mindful of the number of clubs that have looked at Gray and continue to pursue him, Leicester are not taking anything for granted and are keen to try to get the deal over the line as soon as possible. Gray made his debut for Birmingham at the age of 17 but came to prominence when he scored a first-half hat-trick against Reading last December.