Mahrez, 26, has been heavily linked with a move to Arsenal since the Foxes' Premier League title triumph last season.
But he resisted a switch to north London and signed a new long-term contract with Leicester until 2020.
However, after a turbulent season with the Foxes which saw Claudio Ranieri get sacked and Craig Shakespeare guide them to safety, Mahrez expressed his desire to leave the King Power Stadium.
And now The Sun claim Arsenal will reignite their interest in Mahrez with Wenger keen to make two marquee signings.
Arsenal transfers: List of summer targets revealed Tue, March 21, 2017
Click to reveal Arsenal's summer shopping list to replace Alexis Sanchez and Mesut Ozil
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Click to reveal Arsenal's transfer shopping list ahead of a busy summer
Arsenal boss Arsene Wenger is preparing a £40million move to sign Leicester star Riyad Mahrez.
The 67-year-old has apparently agreed a two-year contract extension at Arsenal after holding positive talks with Gunners owner Stan Kroenke after the FA Cup triumph over Chelsea last week.
Wenger will supposedly remain in complete control of player recruitment, scouting and coaching as Arsenal also bid to bring in a director of football.
And he wants to sign Mahrez to kick start a new era and challenge for the Premier League title next season.
But Leicester will demand at least £40m for the winger, who they signed from French side Le Havre for £400,000 in 2014.
Arsenal boss Arsene Wenger is preparinf a £40m move for Leicester star Riyad Mahrez
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Wenger will be keen to knock Chelsea off their perches next season, but will need to get long-term deals over the line for star duo Alexis Sanchez and Mesut Ozil to stand a chance of competing for the title next season.
He wrote: “Out of the huge admiration and respect I hold for Leicester I wanted to be totally honest and transparent. I have informed the club that I feel now is the time for me to move on.
“I had a good discussion with the chairman last summer and we agreed at that time that I would stay for another year. I’ve had the four best seasons of my career at Leicester and have loved every moment.
“I feel immense pride to have been a part of what we have achieved during my time at the club, culminating in becoming Premier League champions.”