The newly promoted Foxes' bid for the former Hull forward triggered a release clause in Campbell's contract - giving them 'no choice' but to allow him to talk to Nigel Pearson's side.
"Leicester City have made an offer which triggers a release clause in Fraizer's contract," Dalman told Wales Online.
"We don't want to sell him and would love him to stay but we had no choice because of the clause.
"We have to allow Fraizer to make his own decision but hopefully he can stay."
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- Nigel Pearson