The Leicester Mercury newspaper reported that Kramaric passed a medical on Tuesday but the deal, reportedly a club record of nearly 10 million pounds ($15.1 million) with add-ons and bonuses, was subject to a work permit.
There was no official word from Leicester, who are three points adrift at the bottom of the Premier League and in urgent need of goals.
Kramaric, who had also been linked to Chelsea, has form in that department and scored a Croatian record eight goals for Rijeka in a single domestic cup match in 2013.
(Reporting by Alan Baldwin, editing by Ed Osmond)
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