On a hectic transfer deadline day, it was widely reported that the leaders had tabled a final offer of £65 million plus a player for the Algeria worldwide.
Mahrez is said to be "depressed" over having to remain at the East Midlands outfit and has missed two training sessions, developments which have led to Puel acknowledging that it is going to be a "tough decision to manage".
The vast wealth in the Premier League meant Leicester City could afford to turn down Manchester City's bid for Riyad Mahrez, according to a football finance expert. All I can say about the situation is that this is the best decision for Leicester, in the best interests of Leicester.
Leicester manager Claude Puel admitted in his press conference yesterday that the club will have to deal with the damaging fallout from Manchester City's failed attempt to sign the winger on Wednesday's transfer deadline day.
"He will not be available for this game".
The 26-year-old has not trained for Claude Puel's side since seeing his hopes of a dream move dashed.
"He would have made [Manchester] City better and stronger", Murphy said, "I think with the injuries they've got he'd have gone straight in [to the team]".
'He's seen other star players being allowed to fly the nest for good money - so why are Leicester demanding a king's ransom for Mahrez?
"I can understand disappointment, and it was a good opportunity for him".
Could Riyad Mahrez be heading for Manchester City? It is important that we stay united.
"I hope for Riyad that he can clear his head and come back with us because he's a big player".