The towering defender had been the subject of frenzied speculation after starring for Australia at the 2022 FIFA World Cup in Qatar.
Now he's set to seal a dream move to the Premier League, the two clubs having agreed a transfer fee for the 24 year-old.
Aside from his exploits in Qatar, Souttar will be familiar to Foxes manager Brendan Rodgers, having made his professional debut at Dundee United while the former was coaching at Celtic in 2016.
The two will link up with Leicester precariously placed in 14th but just one point outside the relegation zone.
Per the Daily Mail, Souttar's £15m move will shatter the record for the highest transfer fee spent on a player from Australia, which was previously held by Socceroos teammate Aaron Mooy after his own £10m move to Huddersfield in 2017.
Meanwhile, Arsenal is still desperate to add a new face in central midfield and will reportedly make late runs at Chelsea's Jorginho and Leicester City's Youri Tielemans before the transfer deadline.
Tielemans is one of Leicester's top talents, appearing in all 20 of their Premier League games this season while contributing three goals and an assist from his 18 starts.
Jorginho is in his fifth season at Stamford Bridge and remains an integral part of Chelsea's squad, making 15 league starts this season, including wearing the captain's armband in their two most recent fixtures.
However, both players are in the final six months of their contracts and are set to become available via free transfers at the end of the campaign, and their clubs may be willing to accept a significantly reduced figure for highly valuable assets.
TOP STORY – GUNNERS GUNNING FOR MIDFIELD ACTION AT THE DEADLINE
According to Football London, Arsenal's pursuit of 21year-old Brighton and Hove Albion standout Moises Caicedo appears to have been unsuccessful, and it now views Jorginho as an acceptable alternative.
The report states Chelsea is willing to let the Italy international leave, indicating he will become expendable if the impending arrival of Benfica's Enzo Fernandez comes to fruition.
Football London also adds Arsenal will make another push at both Caicedo and Real Sociedad's Martin Zubimendi, but they are considered unlikely options.
Meanwhile, 90min claims Leicester would be more open to allowing Tielemans to leave if it was not locked in a relegation battle, but as it stands it would need a "huge" bid to prioritise a transfer fee over its Premier League survival.
ROUND-UP
– Calciomercato is reporting Leeds United will try to secure Roma's Nicolo Zaniolo after he snubbed Bournemouth, but Roma is unlikely to accept unless the full transfer fee is paid up front.
– According to L'Equipe, Paris Saint-Germain is interested in a loan move for Chelsea's Hakim Ziyech, who would prefer a loan to France instead of a fellow Premier League side.
– Manchester United captain Harry Maguire has rejected a loan approach from Inter and will instead opt to fight for his place, although he will re-evaluate his future at the end of the season, per the Daily Star.
– El Nacional is reporting Liverpool will make a run at signing Chelsea's N'Golo Kante when his contract expires after the season.
– According to Football Insider, Southampton has agreed to meet the £26.2million (€30m) release clause for 22 year-old Braga forward Vitinha.
