It is understood the Foxes have made an £800,000 bid for the former Manchester United striker, who is now set to hold talks with the Premier League new boys.
A number of clubs have been credited with an interest in Campbell in the wake of Cardiff's relegation from the Premier League, but Dalman hopes the player stays to help fire the Bluebirds back into the top flight at the first time of asking.
He told walesonline: "Leicester City have made an offer which triggers a release clause in Fraizer's contract.
"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."