As talkSPORT revealed earlier this week, the Foxes had seen their opening offer of £2.5m turned down by the French giants, who deemed the bid way too low.
And, according to Radio RMC, Marseille have snubbed Leicester's second offer of around £4.5m too.
Head coach Rudi Garcia is not keen on losing one of his star men midway through the season and as such, Leicester may be forced to turn their attentions onto other targets.
However, the Foxes are not expected to give up the fight for Sarr and could launch a third attempt to lure the 25-year-old to the Premier League later this month.