The county's senior coach Tim Boon and chief executive David Smith have revealed they met Hoggard, 32, on Monday to discuss personal terms and Smith claims the two parties are 'in the ball park' when it comes to an agreement.
'Matthew likes what we are doing here and he knows Tim well,' added Smith.
'I came away from the meeting feeling that we are in with a shout.'
Hoggard is expected to entertain a number of offers before choosing his destination for next season, although he is thought to be demanding a minimum three-year contract.
Although Smith is determined to get his money's worth from the seamer, who the chief executive says will play in limited-overs matches with the Foxes.
'He hasn't played much one-day cricket recently but he will play that with us,' he continued.
'I think he needs a new challenge. I think we would say we were hopeful.'
Hoggard left home county Yorkshire under a cloud earlier this month when he revealed to the press his 'disappointment' at being cut from the playing staff, having been offered a new contract earlier in the season.
However, Yorkshire bosses countered by saying Hoggard's wage demands were too high and chastised him for going public with the announcement after initially agreeing to release a joint statement with his county.
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