The English Premier League side will face stiff competition from Borussia Dortmund and other clubs in Germany as they look to land the Colombian this summer.
New manager Brendan Rogders is familiar with Morelos having enjoyed two-and-a-half highly successful years at rivals Celtic.
He will join director of football John Rudkin and head of recruitment Eduardo Macia in Leicester’s transfer committee to decide whether a bid should be tabled for the 22-year-old.
Rangers are reportedly looking for offers of at least £20 million for their prize asset.
Morelos said in an interview with a Colombian radio station last month that he expects to be sold in the summer window.