Masilela has been a long-term target for Eriksson and the Leicester boss is optimistic of pushing through a deal for the player.
"I can't confirm he is definitely coming, but it might happen," said Eriksson in the Leicester Mercury.
"The thing there is the medical, because he has been injured.
"He has been on our list for a long time and we know he is a good player. But it is not done yet."
Eriksson has also held talks regarding fresh loan deals for Benfica defender Miguel Vitor and Manchester City youngster Ben Mee following their stints at the King Power Stadium last season.
The Swede added: "I have spoken to (Benfica boss) Rui Costa and Vitor might come, and I am trying to get Ben but I think he is looking at all the signings we are making, and he wants to play regular football.
"It might happen, one or even both of them."
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