The Algerian is facing a £200,000 fine after going absent without leave for a third day and it is not known when the winger will next report for duty.
Sources say it is unlikely he will have any involvement at the King Power Stadium for the visit of Carlos Carvalhal’s side.
Mahrez was desperate to force through a transfer to Manchester City and has told Leicester he is not in the right frame of mind after the deal collapsed.
The 26-year-old was due at the club’s Belvoir Drive training ground on Thursday but stayed away. He also failed to show on Tuesday and did not travel with the squad for Wednesday’s game at Everton.
Those who featured at Goodison Park were in for a light session on Thursday but Mahrez would have done full training. There has been communication but Mahrez’s approach is set to see him fined the maximum two weeks’ wages, totalling £200,000.
The situation is being treated very delicately by Leicester following the release of a statement that said Mahrez was ‘depressed’ at the turn of events.
The player had his heart set on joining Pep Guardiola once City’s interest hardened.
By coincidence, Leicester’s next game after Saturday's match with Swansea is a visit to City, raising the prospect that Mahrez will next appear at the Etihad Stadium.
Leicester sources have indicated a straight cash offer of £80million may have been enough to prise Mahrez from the club but City’s best bid was £50m plus a player rated at £15m.
Sportsmail understands that player was 20-year-old winger Patrick Roberts, who is currently on a season-long loan with Scottish champions Celtic.
But sources stress it was Leicester who proposed adding Roberts, who City rate highly.
Either way, the Premier League leaders were frustrated in 11th-hour attempts to sign the 2016 PFA Player of the Year.
It is thought that starting negotiations earlier in the window may have worked better, with Leicester given time to find and finance a replacement.
Mahrez handed in a transfer request in an effort to persuade Leicester’s owners to let him go, but the approach went down badly with the Srivaddhanaprabha family.
Leicester goalkeeper Kasper Schmeichel outlined that stance after the draw at Chelsea last month.
‘Unless Riyad’s got a buyout, which I’m not aware of, our chairman can be quite stubborn,’ Schmeichel said.
Mahrez’s actions have raised eyebrows among his team-mates but it is thought the majority understand his ambition and reintegration will not be an issue.
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