Peterborough United have confirmed that they have accepted a bid from Leicester for Norwich City target Craig Mackail-Smith.
Canaries chief Paul Lambert had hoped to entice the highly-rated Scotland international to Carrow Road with the lure of Premier League football when he was given the green light to leave London Road, following Posh's promotion back to the Championship via the League One play-offs.
However, after Mackail-Smith snubbed both Norwich and fellow Premier League new boys QPR, it seemed that West Ham would win the race.
But Posh's director of football Barry Fry has now revealed that the Hammers' Championship rivals Leicester are in the driving seat after matching their valuation.
Fry, who is waiting to learn the outcome of Mackail-Smith's talks with Leicester boss Sven-Goran Eriksson, told the Leicester Mercury: "We have accepted a bid from Leicester.
"Their manager Sven-Goran Eriksson is out of the country at the moment, but was due to speak to Craig over the weekend.
"I have had several conversations with West Ham, but we have turned down their bid. I am certain they will be back.
"Craig is facing a tough decision. He turned down Norwich and he has now turned down QPR."