The German-born Ghana international has played for the Red Devils' Under-21 side twice in the past week and the striker - who can also play at left-back - performed well enough for his current manager to suggest a deal may be on the cards.
"We'll be discussing this week what the next step is," he told BBC Radio Leicester. "As soon as we find that out we will let you know. [Schlupp] has done well."
Schlupp has played 35 games for the Blues after coming through the youth system, and hit six goals in 10 appearances while on loan at Brentford in 2011, with former Leicester boss Sven-Goran Eriksson believing he could be a great player.
"He's a very, very good football player with very good talent. I wanted to keep him," Eriksson added. "If he is ready for Manchester United, I do not know. It is a big thing for him but would be a big loss for Leicester if it happens."