Having been linked with a move away from the King Power Stadium throughout the summer, the 24-year-old could depart the club before tonight's transfer deadline.
Daka has struggled to establish himself in the Leicester side since completing a £23m move from Red Bull Salzburg in the summer of 2021.
Despite making 30 appearances in the Premier League last term, Daka started just 17 top-flight matches as Leicester were relegated to the Championship.
The Zambia international has seemingly been given permission to leave the club after failing to feature in any of Leicester's last four matchday squads.
Italian giants AC Milan were believed to be lining up a deadline day move Daka, with Divock Origi heading towards the exit door at the San Siro.
However, according to the Daily Mail, Bournemouth are set to hold off interest from the Serie A side to win the race to land Daka.
The report claims that the Cherries are closing in on a deal to sign Daka on a season-long loan deal with an option to buy.
With the Zambia international set to complete a move to the South Coast, Bournemouth will allow Kieffer Moore to join Championship side Millwall on loan.
Should everything go according to plan, Daka will add to Andoni Iraola's current forward options, which include Dominic Solanke and Antoine Semenyo.
While Bournemouth are looking to secure Daka's services, they are also working to recruit Leeds United attacker Luis Sinisterra on a loan deal.
The Cherries have enjoyed a successful summer, having recruited Ionut Radu, Milos Kerkez, Max Aarons, Hamed Traore, Alex Scott, Tyler Adams and Justin Kluivert.
Once the transfer window shuts, Bournemouth will turn their attention to Saturday's Premier League away meeting with Brentford.