The Ligue 1 side have “started negotiations” over a possible transfer for the Zambia international, according to French media outlet L’Equipe.
Daka has also been linked with Premier League club Everton in this summer’s transfer window amid doubts over his future at Leicester following their relegation to the Championship.
L’Equipe claims Monaco have identified Daka in their search for a centre forward and that sources have indicated the 24-year-old is “enthusiastic” about the prospect of a move there.
Daka has not featured for the Foxes so far this season under new head coach Enzo Maresca.
Daka, Timothy Castagne, Harry Souttar, Victor Kristiansen and Boubakary Soumare were also absent from the squad in Leicester’s latest outing at Huddersfield Town on Saturday.
Maresca ended up naming two goalkeepers on the bench – Daniel Iversen and Danny Ward.
After the match, Maresca confirmed that transfer speculation was partly behind their exclusion but it was not the only reason, though he would not elaborate further.
He said: “The players that were not in the squad today, it was because of a technical decision for some of them, and for some of them, I thought it was better for them to stay at home. But that doesn’t mean that in the next game they won’t be involved. It was just for today.”
Asked if it was because of doubts around their futures at the club, he replied: “You are thinking about the market. I know, it is the normal thing. It’s not for that, I promise. Probably for some of them there is some noise and probably could be one of the reasons why I decided to leave them at home, but it’s not the only reason.”
Daka joined City from RB Salzburg in the summer of 2021 in a £23million deal. He has scored 15 goals in 74 appearances, including four in 36 outings last season.
Monaco are apparently also working on a deal to land another forward – Folarin Balogun – from Arsenal. They have reportedly had a €40m bid for Balogun rejected by the Gunners but could return with an improved offer.