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Leicester City may have to pay Luton Town £12 million for full-back James Justin.

City are keen on making the 21-year-old their first signing of the summer and have been negotiating with the Hatters over a fee.

Luton have rejected a previous offer of £7.5 million from Aston Villa for Justin, who featured in last season’s League One team of the season as Luton were promoted to the Championship, and City have been discussing a deal with the Hatters, who are reportedly demanding £12 million.

City hope they can convince the Hatters to lower their asking price, but are still confident they can land their preferred target.

City are looking for a young, up-and-coming full-back who can push first choice right-back Ricardo Pereira, who was City’s player of the year and players’ player of the year after a superb first season at the club.

City don’t want to pay a huge fee for a player who initially may not feature regularly, preffering to focus a large chunk of their transfer kitty this summer on the deal to sign Youri Tielemans and a wide player who has the ability to play inside or even as a central striker, but they believe Justin can develop into a Premier League player and push Pereira hard for his shirt in the future.

Pereira has been linked with Paris Saint-Germain and Barcelona, but City have no interest in selling the Portugal international.

Justin fits the remit for City as he began his career as a midfielder and is comfortable in possession, and he is versatile to even be able to play at left-back, despite being right-footed.

Justin is under contract until 2020 but Luton have an option of a one-year extension.