City kept a watching brief and were reported to be impressed by his return to the side and moved quickly once the summer internationals were over, to resume talks with their Premier League counterparts.
Mahrez was close to joining City on Deadline Day in January, but Leicester asked for £80 million (R1.36 billion) at the time, and City pulled out of the deal.
Leicester have successfully fended off interest in their star winger over four transfer windows and demanded £80m from City in January.
And Mahrez did not take the rejection well refusing to play or train for some time and even scooped up fines fined for his boycott.
Rob Tanner, a journalist with the Leicester Mercury and offer of of the official book to commemorate the Foxes' title success two years ago, expected Mahrez to go.
The manager remains in pole position to prise Riyad Mahrez from Leicester City, though an agreement between the clubs is yet to be agreed.
The rumours are not going away about Real Madrid forward Cristiano Ronaldo signing for Juventus with the 33-year-old Portugal captain ready to accept a £26.5m-a-year contract.
The majority of Leicester's squad reported back for pre-season training on Monday, but Mahrez and his Algeria team-mate Islam Slimani are not due back until next week having played in an global friendly on June 7.
Operation To Rescue Boys Trapped In Thai Cave Resumes
On Sunday, officials decided they could no longer wait, saying conditions were "as flawless as they will be" for a rescue attempt. Two divers are helping each one make his way through very narrow tunnels that twist and turn, and filled with dark muddy water.
Trump administration takes another swipe at 'Obamacare'
Many Trump followers often cheer cuts to Obamacare, not knowing that the Affordable Care Act and Obamacare are one in the same. The payments were created to stop insurers from losing money on very sick patients, who cost the most to treat.
Dancing is Crime in Iran
In the posts, she did not adhere to the obligatory Islamic dress code that requires women to cover their hair and body in public. Though the original account was shut down, her videos were posted online by other accounts with several thousand followers each.