Rak-Sakyi is rated as an exciting prospect at Selhurst Park, but he could find his playing time limited if he stays put at Palace this term.
Leicester have put forward a solution by the way of a loan agreement and are now in talks with Crystal Palace to make the switch happen.
The Foxes want the winger on a temporary basis and there are hopes that a deal can be done for Rak-Sakyi to go to the King Power Stadium.
He would link up with a Leicester outfit rebuilding under new boss Enzo Maresca and aiming for an instant return to the Premier League.
Rak-Sakyi, 20, spent last term on loan in League One at Charlton Athletic, where he played regularly.
A move to Leicester would represent a step up for the Palace winger and give him the chance to test his mettle in the Championship.
Rak-Sakyi progressed through the youth system at Crystal Palace after joining the Eagles from London rivals Chelsea.
