Mike McGrath of The Telegraph claims that the Blues have made contact about a possible deal for the 22-year-old, who has been away at the World Cup with Ghana this summer, with a deal still needing to be negotiated.
Fatawu moved to England from Sporting CP in 2023, joining the Foxes on an initial loan deal that was made permanent when they secured promotion from the Championship to the Premier League.
He stuck with them back in the second tier last season, notching nine goals and seven assists, scoring against Ipswich from inside his own half at the King Power Stadium back in December.
In the end, he couldn't help Leicester avoid relegation to League One, with a summer departure now inevitable. A number of clubs have been linked with Fatawu in the last few weeks, but Ipswich seem to be in a strong position to sign the talented wide man.