The 2015-16 Premier League champions have had an offer reportedly worth £12.5 million accepted and will now finalise personal terms with the player.
"Sevilla and Leicester City have reached an agreement in principle for the transfer of Vicente Iborra to the English side," Sevilla confirmed in a statement.
"The player will travel to Leicester to pass a medical and sign his contract. Once the process is concluded, he will return to Sevilla to bid farewell publicly to the fans."
Iborra, who was linked with Sunderland in January, is said to have impressed Leicester boss Craig Shakespeare when the sides met in the last 16 of the Champions League last season.
The 29-year-old scored eight goals in 44 appearances last season to help Sevilla reach the Champions League knockouts and finish fourth in LaLiga.