After being deemed surplus to requirements under Vitor Pereira, Dawson is allegedly in discussions with Wolves to end his contract early.
In order to get Dawson to go to the East Midlands, the Foxes discussed a trade agreement with Wolves that would see the former Wolves star return to Molineux in exchange for current defender Conor Coady.
Despite selecting prospects for four positions, Rud van Nistelrooy was unable to bring in one of those priorities—a center-back—as their talks quickly broke down.
Leicester currently has a spot available in its 25-man roster, which means they might bring in a free agent.
However, even if they so desired, the player in issue would not be their deadline day objective.
Leicester won’t be allowed to sign Craig Dawson
Free agents can be signed by Leicester in this window – but there is a catch.
As per Premier League rules, only free agents who were without a club before the end of the window are eligible to join mid-season.
Since Dawson is still tied down to a contract at Wolves, the 34-year-old wouldn’t be able to play until next season at the earliest as part of the registration rules.
If he were to leave, the former West Bromwich Albion man would be allowed to join clubs where the transfer window is still open.
The most likely of those would be a transfer across the pond to the MLS as their window remains open until mid-April.
Wolves were very busy in the transfer window in comparison to the Foxes.
Leicester target Nasser Djiga was one of two central defenders to move to Molineux in the winter window which has left Dawson further down the pecking order.
In a recent press conference, Pereira stated that he had discussed the matter with the club and that he would not be part of his future plans.
The Wolves manager stated: “I informed the club beforehand that I would not have room for Craig in the team if we added another center-back.
I had a lengthy conversation with the club over this matter.
“I spoke with the player, and I have a great deal of respect for him and his career. However, his profile is not the one I want to use to assemble the squad.
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