Leicester City are hopeful of signing Kelechi Iheanacho from Manchester City for a deal of around £25m.

The 20-year-old Nigerian has other clubs pursuing him and Manchester City do not expect any transfer to be completed for another couple of weeks, but Leicester are at the front of the queue after putting together a financial package that would take their summer spending past £50m.

Iheanacho is highly rated at City and has an impressive record, scoring 21 goals from 64 games despite more than half of those appearances being from the bench. Yet he started only five Premier League matches last season and that situation is unlikely to improve with Sergio Agüero and Gabriel Jesus competing to be City’s first-choice centre forward.

Craig Shakespeare, Leicester’s manager, has already signed Harry McGuire from Hull City and the Sevilla midfielder Vicente Iborra for a combined total of £29m. Iheanacho would require an even bigger outlay but Leicester are in a position to be able to meet City’s demands for a player who has plenty of potential and is seen as a natural goalscorer.

Meanwhile, Watford have joined Newcastle and West Ham in the race for Joe Hart, as they seek to simultaneously increase the number of homegrown players in their squad and land a marquee signing to help establish the club as serious players in the Premier League. The Hornets are preparing for their third successive season in the top flight, having finished their last in 17th place after losing their final six matches.

Facebook Twitter Pinterest Toni Duggan poses with a Barcelona flag. Photograph: Paco Largo/Barcelona FC

Toni Duggan interrupts burglary hours after saving England at Euro 2013 Read more

Their current No1, Heurelho Gomes, has excelled since arriving at Vicarage Road three years ago, starting precisely 120 league games. He was named player of the season in 2016 and came second in the voting last season, but at 36 is coming towards the end of his career. Hart is unwanted at Manchester City and is considering his options, with West Ham and Newcastle also keen to sign him.

Earlier on Thursday, the Manchester City striker Toni Duggan signed a two-year contract with Barcelona. The 25-year-old told her new club’s website: “For me, Barcelona are the biggest club in the world and naturally I wanted to come here.

“I have had a lot of success in England but I want to have even more. I think I need another trophy on my list and I know that Barça’s ambition is to win the Champions League. This is my goal, too.”