The Gunners are keen on signing the 24-year-old, but the Foxes £60m valuation could make them price out.
Reports are also stating that the talks between the two clubs aren’t progressing in the right direction.
Lingard enjoyed a brilliant loan spell at West Ham during the final half of the last season, which saw him revive his form in Premier League.
The 28-year-old has featured in Man Utd’s pre-season games, and Ole Gunnar Solskjaer appears to have tremendous trust in him ahead of the new season.
Lingard is also looking to prove his doubters wrong by succeeding at Old Trafford with the help of the stellar form he enjoyed with the Hammers.
However, the English playmaker will face a tough battle to be a starter as Jadon Sancho and Bruno Fernandes are expected to be Ole Gunnar Solskjaer’s go-to options.
The Gunners should shell out £25m to prise Lingard away from Old Trafford, and the fee is relatively lower than the one for Maddison.
Mikel Arteta is prioritising a move for an attacking midfielder, and Lingard can be a great option given his current form and experience in the English top flight.
Having helped West Ham to qualify for Europa League last term, Lingard could be the player the Gunners need to get back to their best.