The Scotland international, who left Celtic to join Wigan in 2011, will complete a £1 million move subject to a medical.
Maloney’s deal at Championship strugglers Wigan was due to expire in the summer. The move puts to bed speculation surrounding Celtic’s rumoured interest in welcoming the Scot for a second spell at the club.
Maloney was also reportedly attracting interest from Major League Soccer side Chicago Fire.
Leicester are currently bottom of the Premier League, and have already sought reinforcements to their squad in Chelsea goalkeeper Mark Schwarzer and Croatian striker Andrej Kramaric, bought for £9 milli0on - a club record.
CONNECT WITH THE SCOTSMAN
• Subscribe to our daily newsletter (requires registration) and get the latest news, sport and business headlines delivered to your inbox every morning